Domestic steel market tends to continue to raise prices

According to the Vietnam Steel Association, steel production raw material prices rising world continuously since the beginning of 2016. In particular, the price of iron ore 62% Fe categories from 40 USD / ton has increased to 65 USD / ton, and currently stands at 57 USD / t the first days of May.

1/2016 early May scrap price around 190 USD / ton, with continuous rising trend and are offering deals at $ 320 / tonne in the first week of May.

At the ASEAN market, billet prices have also increased from 260 USD / ton to 420-430 US dollars / ton in January 4/2016. Prices of other raw materials such as hot rolled coil was trading at US $ 410-420 / ton, while the first is about 280-300 USD / ton.

HRC steel price increases of $ 100-120 / tonne. CRC steel prices early May at around 500 USD / ton. Long steel prices being offered at about 430-450 USD / ton.

Mr. Nguyen Van Sua said the increased world price of raw materials in Asia is largely due to the impact from the Chinese market with a number of key factors such as the macroeconomic policy of the Chinese Government has impact positive market sentiment.

The actual needs of China’s rise, the price is regulated in accordance with the laws of supply and demand. Besides, the local supply shortage and plans to cut production to reduce immediate air pollution also affects the market.

In Vietnam, the impact of raw material prices on the world steel production increased rapidly causing domestic producers to adjust prices accordingly. Besides duty decision temporarily trade safeguards for embryos and long steel products imported into Vietnam market also has an impact on the market.

With the general trend of the market prices of raw materials and steel products in the world, domestic market prices over time also has a correction.
Billet prices have increased from 6.9 million / ton (earlier this year) to 9.3 million / ton; Long steel market price at 10.3 million / ton, up slightly compared to March 4/2016.

According to Sua, so, with this trend expected domestic steel prices next time will likely continue to rise, at about 11.4 million / ton.

According to the Vietnam Steel Association, in April, a member enterprises have more than 1.31 million tonnes consumption of steel, an increase of 26.7% compared to the same period of 2015, but down 20% from the previous month.

In May, a member enterprises have produced over 1.48 million tons of steel, an increase of over 30% compared to the same period in 2015; which exported nearly 192,000 tonnes, up nearly 50% over the same period.

This is a relatively high growth rate compared to the average of recent years. This growth made the production capacity of steel production plants as well as domestic long steel construction in terms of both quantity and quality.