Steel prices rise 5 pct, nears historic peak

Steel prices in Vietnam have increased by 2-5 percent in the last two weeks on the back of global price increases and are not far away from reaching last year’s peak.

The Thai Nguyen Iron and Steel Jsc has increased its rolled steel prices to VND17.3-17.6 million ($759-772) per tonne, up by around 2 percent from the first week of February.

The Hoa Phat Group, meanwhile, has upped prices by 3.7-5 percent to VND17.15 million per ton, which is just 4.6 percent away from the previous historic peak of VND18.3 million last year.

Some industry insiders anticipate that prices will rise even higher.

“There could be two or three increases this year, pushing prices up by VND1 million”, said Ngoc, a steel distributor in Hanoi.

Vietnam’s steel prices have been rising up as China, the world’s biggest exporter and manufacturer, pushed prices up by nearly 6 percent two days ago to a five-month high of $756 per ton.

The shortage of supply and rising demand as countries push recovery from Covid-19 is said to be the reason for the price increase.