MTA Hanoi is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726

Steel prices continue to rise despite falling demand

24/03/2023
Steel prices continue to rise despite falling demand
A man climbs on steel packages at Hoa Phat steel mill in Hai Duong Province, Vietnam. Photo by Reuters

The demand for steel remains weak, but producers have increased prices six times so far this year because of increasing input costs.

Statistics of the Vietnam Steel Association show that the average steel price at the end of February rose by 5% against the end of 2022, but was still 8% lower than the same period last year.

According to data of Steel Online, a distributor of many big brands such as Hoa Phat, Viet Y, Kyoie and Pomina, the current selling price of Hoa Phat coil steel is VND15.96 million (US$673.21) per ton, and that of Hoa Phat rebar steel is VND15.84 million.

Pomina has hiked its selling price for coil steel and rebar steel to VND17.57 million and VND17.6 million per ton respectively.

The price hike came after prices of input materials surged, the association said, adding that local steelmakers had to increase selling prices to reduce losses.

Vietcombank Securities said that world prices of input materials such as coke, iron ore and scrap steel have tended to rise since the end of last year, mainly due to the expectation of China’s revived steel production after its reopening.

Bui Duy Anh, deputy general director of Steel Online, told VnExpress that the hike in selling prices was also due to the scarcity of steel billets, which resulted from the closure of some billet plants last year.

Hoa Phat, which holds some 40% of the national construction steel market share, sold 877,000 tons of construction steel, hot rolled coil steel and steel billets in the first two months of this year, down 34% against the same period last year.

Steel Online predicts that steel consumption will slow down in the coming months when fewer civil construction projects are implemented due to the lagging macro economy.

Selling steel prices are likely to go sideways in the coming months, and the billet shortage may end around May because some factories have restarted their billet furnaces, according to Steel Online.

The securities company said the stagnant real estate market is a big barrier to the growth of the steel industry this year.

Real estate construction, which accounts for 60% of total steel demand, is sluggish because developers are facing difficulty in accessing new capital and due to legal risks.

Source: VnExpess International

Share this post
Tags:

You may be interested in

24/05/2023
Thai Nguyen: Attracting many FDI projects right from the first months of the year
(Construction) – With many outstanding preferential policies in improving the investment and...
24/05/2023
Republic of Korea leads in the scale of pouring FDI into Bac Ninh province
Korea currently has 589 valid investment projects, and total registered investment capital is...
24/05/2023
Revealing billion-dollar opportunities in FDI attraction
Although currently, foreign investment in Vietnam is still in a downward trend, many opportunities...
18/05/2023
Prime Minister: Strongly promoting and improving the efficiency of foreign investment in Vietnam
(VOV.VN )- The Prime Minister asked delegates, business representatives and investors to focus on...
18/05/2023
Three foreign groups plan to pour 3.7 billion USD into Vietnam
Three foreign groups unveiled their plans to pour 3.7 billion USD into Vietnam at the Prime...
18/05/2023
China’s BYD plans Vietnam production base to export to Southeast Asia
Vietnam Deputy Prime Minister Tran Hong Ha speaks with BYD chairman Wang Chuanfu on May 5, 2023...
10/05/2023
9 Key Singapore-Invested Industrial Parks in Vietnam
The Vietnam-Singapore Industrial Park Joint Venture Company Limited (VSIP) has been investing...
10/05/2023
The practice of Chinese auto parts producers “migrating” their factories to Vietnam and Indonesia
Chinese auto parts manufacturers face growing pressure from foreign customers to set up factories...
10/05/2023
Vietnam is ready for new conditions to attract FDI
Kinhtedothi – The global minimum tax that is being used has made it hard for Vietnam to keep its...
24/04/2023
Improving Vietnam’s Global Minimum Tax Policy
On April 18, in Hanoi, the Ministry of Finance held a scientific conference with the theme:...

Subscribe to Our eNewsletters

    captcha
    Đặt Gian Hàng
    Đăng Ký Tham Quan Trực Tuyến
    Đăng Ký Tham Quan Theo Đoàn