Steel prices rebounded

The domestic increase has been recorded since Thai Nguyen Iron and Steel Joint Stock Company announced a price increase from February 12. Accordingly, CB240 coil is raised to a price of 17.3 million VND/ton if paid immediately and nearly 17.4 million VND/ton if payment is delayed, with a guarantee.

Right after that, simultaneously on February 15, other major steel brands such as Hoa Phat, Viet Duc, Viet Y, Kyoei, Pomina... also adjusted their selling prices.

Up to now, CB240 coil price has generally increased by 300,000-550,000 VND/ton compared to the last adjustment period at the end of January, fluctuating around 16.9-17.6 million VND/ton. Meanwhile, the price of D10 CB300 bar steel increased by 250,000-610,000 VND/ton, to 17.02-17.81 million VND/ton.

Notably, Pomina steel had the highest price increase, with 550,000 VND/ton for CB240 steel and 610,000 VND/ton for D10 CB300 steel.

Thus, after this increase, the price of construction steel of many manufacturing enterprises has approached the peak of about 18.3 million VND/ton in mid-2021.

These developments closely follow world market prices. Reuters reported on February 16, China's stainless steel futures price rose to the highest level in more than 3 months. The reason is the high input costs and the prospect of demand, while the Beijing government still maintains measures to limit iron ore mining to protect the environment.

However, today's steel price (February 17) for May delivery on the Shanghai Exchange has shown signs of falling about 65 yuan to 4,715 yuan/ton, equivalent to nearly 17 million dong/ton.

However, in Vietnam in the coming time, many large-scale public investment projects will continue to be implemented, leading to a sharp increase in steel consumption output, which is likely to affect steel prices.

Previously, experts of Maybank Kim Eng Securities Company (MBKE) expected the economic stimulus package from 2022-2023 to quickly help the domestic steel market recover. Besides, the infrastructure construction investment package worth 150 trillion VND, plus the existing 530 trillion VND, will help public spending increase by 38% this year.

At the same time, the adjustments to the Law on Construction, Investment and Real Estate will remove bottlenecks that are preventing the development of the residential real estate industry in recent years. This will help the domestic steel market to grow by 15-20% in 2022.

Zingnews