Steel price exceeds 18 million dong a ton09/03/2022
The price of construction steel in the domestic market of many enterprises has just been announced to increase, exceeding 18 million dong a ton.
From March 7, the price of construction steel of Thai Nguyen Iron and Steel Joint Stock Company (TISCO) sold at the factory is listed at 18 million VND per ton or more, depending on the type.
For example, CB400, CB500 D10 rebar (10mm diameter) is 18.2 million VND per ton (excluding VAT). Rebar CB400, CB500 D12 is 18.05 million VND per ton. CB240 coil, CB300 D10 rebar, new price is 18 million VND per ton…
These prices do not include VAT and are subject to immediate or delayed delivery. If payment is delayed, each ton of steel is more expensive by 950,000 VND, depending on the type.
Compared to the previous month, each ton of TISCO’s construction steel costs more than VND 800,000 to VND 1 million, depending on the type.
Similarly, a series of other domestic steel brands also adjusted their selling prices by 700,000-800,000 VND per tonne from March 7. Kyoei Steel increased by VND 800,000 per ton with CB300 D10 rebar, to VND 18.02 million; CB240 D10 coil to 18.2 million dong, up 1.2 million dong per tonne compared to the previous month.
CB240 steel coil was quoted by Viet Duc Steel for 17.7 million VND, an increase of 700,000 VND; CB300 D10 rebar also increased to a new price threshold of 18.02 million VND per ton.
Hoa Phat’s steel lines all increased by about 700,000 VND per tonne compared to the end of February. For example, CB300 D10 rebar has a new price of 17.83 million dong per ton, CB240 is 17.73 million dong… In the southern market, the price of these two types of steel of Hoa Phat is “slightly” higher than the North’s 100,000-150,000 VND per ton.
Vietnam Italy steel brand raised each ton of CB300 D10 rebar and CB240 coil by 400,000 VND per ton, respectively 17.8 and 17.7 million dong.
Anh Vu, the owner of an agent in La Khe (Ha Dong), said that steel prices started to increase after the Lunar New Year and there is no sign of cooling down. “In the past ten days, many brands have announced price increases up to 3 times, each time increasing by 300,000-350,000 VND per ton, depending on the type. Including 3 times, each ton has increased by millions of dong”, he said.
The upward momentum of domestic prices, according to businesses, is due to the skyrocketing price of imported raw materials (coal, iron ore, scrap steel…) on the world market; steel supply is scarcer since the time of the Russia-Ukraine tension broke out.
In the steel update report in the first quarter of this year, Vietcombank Securities Company (VCBS) industry forecasts that steel selling prices and steel production costs will increase due to higher prices of energy products when Russia is also an exporter of important energy commodities in the world. Currently, the prices of oil, gas, and coal are increasing rapidly and are almost back to the old peak set in 2021, which causes steel production costs to rise sharply again.
From the beginning of March until now, the price of coal futures in Newcastle (Australia) has increased by more than 33%, to over $400 a ton. In general, since the beginning of the year, the price of this item has increased by 100%. In addition to coal demand for production, European countries are also increasing their purchases to replace gas with coal, reducing dependence on Russian gas. Supply is limited while demand is increasing, pushing coal prices up.
The price of billet offered in the Southeast Asian market has exceeded 700 USD per ton, up 70-80 USD per tonne compared to the beginning of February. Along with that, the transaction price of iron ore and scrap steel has not stopped increasing, pushing up the price. finished iron and steel products in the domestic market increased accordingly.
In addition to prices, the Russia-Ukraine conflict can disrupt the world’s steel supply, leading to a supply shortage and increasing steel prices. Russia currently accounts for about 10% of the world’s steel supply, and Ukraine about 4%. Therefore, importing countries from these two countries are flocking to find alternative sources of imports from China. The price of rebar futures in the Chinese market has increased 7% since the time of the Russia-Ukraine tension, to nearly 789 USD per ton.
In the country, the restart of a series of infrastructure and civil construction works after a period of hiatus due to the epidemic, also caused a high demand for steel, especially construction steel. With the increasing demand for construction and investment, the Vietnam Steel Association (VSA) forecasts, the domestic steel market will grow by 15-20% in 2022.