Domestic steel price will continue to increase due to raw material price storm

According to ACBS, the rising steel price is an advantage for domestic steel producers such as Hoa Phat, Hoa Sen and Nam Kim. Besides, steel trading companies like SMC Trading can also benefit from the growing steel market.

Currently, the tight supply of iron ore in the world can lead to an increase in the price of iron ore, making this commodity above 150 USD/ton. In addition, China's steel demand in 2022 is expected to recover when the Government of this country introduces stimulus packages and increases public investment.

Vietnam's steel market has a high correlation with the world steel market, when the domestic steel industry is still heavily dependent on imported raw materials for HRC billet and coil. World steel prices, galloping iron ore prices are a factor driving steel prices in Vietnam in 2022.

ACBS believes that the domestic steel price will increase further when consumption demand grows by 12-13% thanks to the recovery of construction activities and the promotion of the Government on infrastructure projects.

It is known that in 2021, although Vietnam's economy faces many difficulties and challenges due to the Covid-19 epidemic, the steel industry still maintains a high growth rate with a total steel output of all kinds reaching 33.29 million/ton . This is considered a brilliant year for Vietnam's steel industry when steel prices continuously "peak" due to high demand, especially at the end of the year.