The price of raw steel is decreasing

Currently, the world steel price has decreased because raw material prices have cooled down.

Currently, the price of metal products has decreased significantly compared to the previous time. In particular, the price of iron ore - the main raw material for steel production fell 2.4% to 150 USD/ton and was also the fifth consecutive week the price fluctuated in the range of 140-160 USD/ton.

According to the latest data of the Vietnam Steel Association (VSA), the prices of input materials simultaneously decreased compared to March 2022. Specifically, the price of iron ore grade 62% Fe on April 8 is currently trading at 155 USD/ton CFR Tianjin port, China, down about 1.5 USD/ton compared to the beginning of March. Accordingly. , this price is about 55-57 USD/ton lower than the highest price recorded in early May 2021 (approximately 210-212 USD/ton).

Raw material prices of coking coal were recorded to decrease sharply. Specifically, the price of coking coal for export at the Australian port on April 8 is currently trading at 359.5 USD/ton FOB.

Similarly, the price of hot rolled coil (HRC) traded on April 8 at CFR Dong A port at 878 USD/ton, down about 12 USD/ton compared to the trading price in early March.

Currently, the world steel price has decreased because input material prices have cooled down in recent years. However, in Vietnam, after increasing 7 times in a row with a total increase of 2.4 million VND/ton, the domestic steel price has not decreased once even though input volatility has decreased significantly.

Accordingly, the steel price is still anchored to the peak of about 18.6-20.6 million VND/ton (breaking the peak of 18 million VND in 2021), nearly doubled compared to the stable time (threshold 10-13 million VND/ton/ton). ton).

The high steel price has affected contractors, causing many construction projects to be delayed, significantly affecting the real estate market.

It is known that the price of  building materials  is one of the 5 types of costs that affect the price of a real estate product. In which iron and steel costs alone account for 15-20%, the rest is the cost of land, construction, management and profits of the business.

Therefore, in order to prevent the price increase of construction materials, Deputy Prime Minister Le Van Thanh recently signed Official Letter No. 2360, requesting ministries, sectors and localities to study necessary solutions, mechanisms and policies to management, stabilizing prices of fuel and construction materials.

In the report on the steel industry, BSC forecasts that the average steel price in 2022 will adjust down according to the falling price of iron ore, which accounts for 45-50% of the cost of billet production.

Recently, the prices of some construction materials such as iron and steel, cement have continued to increase sharply. The reason is that fuel prices, especially gasoline, are increasing due to the conflict between Russia and Ukraine, leading to scarce supply.

Explaining this development, VSA said that factories increased the selling price of finished steel to partially offset the cost of raw materials and production costs.

CafeLand