Steel prices surge

Rolled steel produced by Hoa Sen Group. - Photo vsa.com.vn

Steel production of all kinds reached more than 2.4 million tonnes last month, a month-on-month increase of 4.34 per cent, and year-on-year increase of 15.6 per cent, reported the Viet Nam Steel Association (VSA).

Sales of steel also reached more than 2.4 million tonnes, a sharp increase of nearly 36.9 per cent compared to October, and up 20.9 per cent over the same period last year. Steel sales also set a record last month.

Exports in November were also better with export figures reaching more than 478,300 tonnes, up 21.52 per cent over October and 40 per cent over the same period last year.

However, steel production, sales and exports were still almost flat in the 11 months.

Specifically, the production of steel in eleven months increased only 1 per cent over the same period last year, reaching more than 23.3 million tonnes.

Steel sales in the first 11 months of this year decreased by nearly 1 per cent compared to the same period in 2019, reaching more than 21 million tonnes. Meanwhile, exports decreased by 2.8 per cent over the same period in 2019, reaching over 4.1 million tonnes.

Regarding the steel production market, the price of iron ore early this month rose by about 16-17 per cent compared to the beginning of last month.

The economy in November continued to recover in new normal conditions, while production, business, trade and consumption continued as a growth factor for the steel market, reported VSA.

Steel prices spike

Price of raw materials for steel production such as iron ore and scrap steel has soared in the past three years and set a new price mark in November.

Along with that, trade tensions between countries, the trend of increasing trade protectionism and the impact of the COVID-19 pandemic have made steel prices increase, according to VSA.

Specifically, the price of raw materials for steel production increased dramatically in the global market last month, which affected its price in Viet Nam.

Domestic steel price is currently at an average of about VND12,000-12,500 (US$0.5) per kilogramme at the beginning of this month, depending on the type of product and enterprises.

Price of construction steel currently sold on the market is around VND15,000 per kilogramme, an increase of about VND2,000 per kilogramme compared to last month.