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Supply disruptions are forcing customers to find other suppliers, and "currently only China can fill the void left by Russia," said an analyst from Huatai Futures.

Steel futures prices in China surged to a more than two-week high on March 2, 2022 as the Russia-Ukraine conflict boosted overseas demand for Chinese steel.

Although it has recovered significantly since the Lunar New Year holiday, VNDirect believes that the valuation of steel stocks is still at a safe level.

After a long year of hibernation, the construction market "wake up", public investment projects were restarted, stimulating steel prices to continuously increase from the beginning of 2022.

Hoa Phat Group said that the market share of Hoa Phat construction steel in Vietnam reached 36.3%, an increase of nearly 6% compared to the end of 2021.

Demand can start from mid-February 2022 and the market establishes a new high price level. The level of competition between factories is increasingly fierce on selling prices and encroaching on each other's market share.

From mid-February, manufacturing enterprises simultaneously increased construction steel prices to 250,000-610,000 VND/ton compared to before the Lunar New Year.

In contrast, iron ore prices fell sharply after China declared war on misinformation.

After a period of stability, on February 11th, major domestic steel brands simultaneously adjusted construction steel prices from 16,540 dong/kg - 17,050 dong/kg for CB240 coil and from 16,410 dong/kg - 17,000 copper/kg with bar steel D10 CB300.

There is still plenty of room for industrial metal to rise, as market structure remains supportive.

In the first month of the year, Hoa Phat construction steel production increased sharply in the domestic market due to increased demand for civil construction and projects before the Lunar New Year.

S&P Global Platts quoted experts predicting that China's steel market this year will be less volatile than in 2021.