With demand forecast to grow 8 percent, steel prices could hit a four-year peak this year before falling as global demand stabilizes, experts say.
Steel prices are expected to maintain a positive momentum
Prices are expected to maintain a positive momentum after their recovery in mid-2020, and rise in the coming months as global demand recovers and major producers worldwide experience supply disruptions due to the Covid-19 pandemic, brokerage SSI Securities Corporation says in its latest report.
Construction steel rose sharply in 2020
The price of construction steel had hit a three-year trough in April last year, at slightly VND10 million ($434.77) per ton, but rose sharply in the second quarter to end at around VND14 million by the end of the year, according to data from the Vietnam Steel Association.
Hot rolled coil prices increased by 43 percent
“Domestic construction steel prices increased 25 percent year-on-year and 36 percent from its April nadir, while the price of hot rolled coil (HRC) was up 43 percent year-on-year and 80 percent over its last through,” the report said.
Steel prices began surging in the second half of 2020
The prices began surging in the second half of 2020 on the back of strong domestic demand driven by the government stepping up disbursement for public construction projects, and domestic traders stocking up on inventory when prices began to rise.
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