In the last months of 2020, steel prices rebounded globally and Vietnamese steel exports also saw positive growth. 

Positive growth in the last months of 2020

According to the Vietnam Steel Association (VSA), steel production of all kinds reached more than 2.4 million tonnes last month. The month-on-month increase is about 4.34%, while the year-on-year increase is 15.6%. 

Sales of steel also reached more than 2.4 million tonnes, which is a record and a sharp increase of nearly 36.9% compared to October. Compared to the same period last year, it’s also a raise of 20.9%. 

Exports in November were also better. The export figures reached more than 478,300 tonnes, up 21.52% over October and 40% over the same period last year.

Steel production in the 11 month were still flat

In general, steel production, both sales and exports, were still almost flat in the 11 months.

Specifically, the production of steel in eleven months reached more than 23.3 million tonnes, increasing only 1% over the same period last year. Steel sales in the first 11 months of this year even decreased by nearly 1 per cent compared to the same period in 2019, reaching more than 21 million tonnes. Meanwhile, exports only reached over 4.1 million tonnes, decreasing by 2.8% over the same period in 2019. 

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

Steel prices will continue to spike

In the past three years, the price of raw materials for steel production such as iron ore and scrap steel has soared and set a new price mark in November. This might be the result of the trade tensions between countries, the trend of increasing trade protectionism and the impact of the COVID-19 pandemic. 

Last month, the price of raw materials for steel production increased dramatically in the global market and also affected its price in Vietnam. Depending on the type of product and enterprises, the steel price is currently at an average of about VND 12,000-12,500 (~US$0.5) per kilogramme at the beginning of this month. 

Meanwhile, the price of construction steel currently sold on the market is around VND15,000 per kilogramme. It’s an increase of about VNĐ2,000 per kilogramme compared to last month.

Source: Vietnam News