Steel prices continue to rise despite falling demand

Statistics of the Vietnam Steel Association show that the average steel price at the end of February rose by 5% against the end of 2022, but was still 8% lower than the same period last year.

According to data of Steel Online, a distributor of many big brands such as Hoa Phat, Viet Y, Kyoie and Pomina, the current selling price of Hoa Phat coil steel is VND15.96 million (US$673.21) per ton, and that of Hoa Phat rebar steel is VND15.84 million.

Pomina has hiked its selling price for coil steel and rebar steel to VND17.57 million and VND17.6 million per ton respectively.

The price hike came after prices of input materials surged, the association said, adding that local steelmakers had to increase selling prices to reduce losses.

Vietcombank Securities said that world prices of input materials such as coke, iron ore and scrap steel have tended to rise since the end of last year, mainly due to the expectation of China’s revived steel production after its reopening.

Bui Duy Anh, deputy general director of Steel Online, told VnExpress that the hike in selling prices was also due to the scarcity of steel billets, which resulted from the closure of some billet plants last year.