Friday, July 1, 2022 11:35:36 AM - Markets open
VN-INDEX 1,177.30 -20.30/-1.70%
HNX-INDEX 270.51 -7.17/-2.58%
UPCOM-INDEX 86.83 -1.75/-1.98%
Steel prices cool down as input costs drop
Vietnamnews - 5/25/2022 3:39:19 PM
 (0 ratings. You must sign in to rate.)
Steel prices have been steadily on the decline in the last few weeks as prices for raw materials dropped on the global market, according to the Vietnam Steel Association (VSA).
 
VSA reported prices for iron ore have gone down to US$139 per tonne, a $16 decrease from prices at the beginning of April, and a $71-73 decrease from the record-breaking prices reported in May 2021 at $210-212 per tonne. Meanwhile, prices for steel scrap have also seen a significant drop to $530 per tonne, a $94 decrease from early April. Hot-rolled coil has fallen to $797 per tonne, an $81 decrease. 
 
Since the beginning of the year, demand for steel in the domestic market has been high as economic recovery was in full swing. Steelmakers, taking full advantage of robust demand, also raised their prices on the pretext of higher input costs of imported raw materials.
 
However, a sharp fall in demand in China due to extensive social distancing measures employed by Chinese authorities in recent months has forced Vietnamese steelmakers to lower prices to clear their inventory, bringing steel down to an average of VNĐ18.25-18.50 million per tonne. 
 
Hòa Phát steel has gone down by VNĐ4.6-8.0 million per tonne, Việt Đức steel by VNĐ5.1-7.6 million, Thái Nguyên steel by as much as VNĐ8.1 million per tonne. 
 
According to owners of metal stores in Hà Nội, while steel has gone down from its over-VNĐ20 million per tonne mark in March, it remained quite high compared to the end of 2021. Recent price drops have not managed to bring steel down to the previous price level after four consecutive price hikes since the beginning of the year.
 
Vietnamese steelmakers together produced more than 11.4 million tonnes of steel during the first four months of 2022, a 2 per cent increase from the same period last year. Of which, 10.6 million tonnes were sold, a 4 per cent increase year-on-year with 2.5 million tonnes exported. 
 
According to the VSA, for the time being, Vietnamese makers were able to meet all domestic demand. However, the country could only supply 20-30 per cent of raw materials, making Vietnamese steel prices largely dependent on the global market. 
 
By the association's estimate, Việt Nam will have to import as much as 18 million tonnes of iron ore, and 6.5 million tonnes of scraps and coking coal in 2022.
 
In the short run, cheaper steal would mean the country's much-needed infrastructure projects could now progress with less pressure from soaring material prices, of which steel alone typically accounted for 20-30 per cent. VNS
 
Read original article here
 
Newer News
30/06 Vietnam’s CPI up 2.44% in six months
30/06 Vietnam enjoys trade surplus of 710 million USD in six months
30/06 Radical and long-term measures needed to boost public investment disbursement
30/06 Việt Nam's GDP hits 10-year high of 7.72% in Q2
29/06 Vietnam’s GDP expands 7.72% in second quarter of 2022
29/06 Việt Nam attracts more than $14 billion of FDI in H1
29/06 Rising costs cast doubt on wood companies growth prospects
29/06 Foreign investment through M&A surges in H1
21/06 Seafood enterprises await growth opportunities
21/06 Imports from Asia rise more sharply than exports
Older News
20/05 MoIT stops anti-dumping duties on galvanised steel from South Korea and China
18/05 PM urges US businesses to invest in tourism and trade in Vietnam
16/05 Keeping CPI below 4 pct this year a challenge: Economist
11/05 FDI – bright spot of Việt Nam’s economy amid COVID-19
11/05 Policies needed to support steel industry development
05/05 Gov’t determined to speed up public investment disbursement
05/05 Vietnamese economy to recover fast this year: UNDP representative
04/05 Mixed profit targets for rubber businesses despite price hikes
29/04 Vietnam draws over 10.8 billion USD of FDI in four months
29/04 Vietnam’s economic recovery even stronger in Q2: Hong Kong news outlet
 
Newsletter Signup
Top Stories
Vietnam’s CPI up 2.44% in six months
HPG: Hoa Phat wants to invest big in two infrastructure projects
Legal framework for securities, corporate bond investment, business strengthened: SBV Governor
Steel prices cool down as input costs drop
Why the stock market sell-off when VN’s economy is strong?
Market Update
Last updated at 11:34:59 AM
VN-INDEX 1,177.30 -20.30/-1.70%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.