In recent days, steel prices have cooled down compared to the beginning of June. However, the current selling price is still "anchored" at a rather high level.
Many people think that increasing production capacity and productivity will help the steel industry meet more domestic steel demand; thereby restraining the price increase of steel.
The price has cooled down
After the recent period of galloping price increases, steel prices had a decrease in the first few days of the week. Currently, Hoa Phat's steel price of CB240 is from 16.6 to 16.7 million VND/ton, D10 rebar is at 16.8 million VND/ton, down about 1 million VND/ton compared to the beginning of June. .
Construction steel products of Vietnam - Germany Steel Company at the warehouse ready to be sold. Illustration: Trong Lich/VNA
CB240 Vietnam-Italy Steel has also decreased to 16.7 million dong/ton, D10 CB300 steel is priced at over 16.8 million dong/ton. Pomina steel brand in the Central and the South with CB240 coil line is from over 16.1 million VND to nearly 16.3 million VND/ton. Steel bar D10 CB300 has a price of 17-17.1 million VND/ton.
The Vietnam Steel Association said that steel prices are on a downward trend, but this is only a temporary decrease. In fact, steel prices are still quite high, because this time is entering the rainy season, works will reduce construction, causing prices to decrease according to supply and demand. When the last months of the year are the peak of the construction season, steel prices are likely to continue to rise sharply again.
According to a report from the Ministry of Industry and Trade, the production capacity of domestic steel mills basically meets the demand for ordinary construction steel. The products that Vietnam can export are high such as galvanized steel sheet, steel pipe, cold rolled steel coil. The rest, many other products such as hot-rolled coil, alloy steel, hot-rolled steel plate, etc. are still imported.
Therefore, the price of many products will still depend a lot on foreign market factors because the input materials of this industry are mostly imported, such as iron ore, scrap steel, coking fat coal, etc. electrode…
Mr. Nguyen Ngoc Thanh, Deputy Director of the Department of Industry (Ministry of Industry and Trade), said that the Ministry has set up a working group with associations and steel enterprises to capture information on production, supply and demand for raw materials. input materials as well as finished steel products in the past time and forecast in the coming time.
In a report to the Government, the Ministry of Industry and Trade detailed the reasons for the recent increase in steel prices, but the Ministry still wants to work specifically with businesses to understand more specifically the causes of steel prices. iron ore materials, scrap iron, electrodes... have increased in recent years.
Increase steel production capacity
According to Mr. Nghiem Xuan Da, chairman of the Vietnam Steel Association, in the last 5 years, the steel industry has had a remarkable development. Vietnam ranks No. 1 in Southeast Asia in terms of steel production and consumption. On the world map, crude steel production ranks 14th. However, Vietnam mainly produces and consumes strongly in construction steel products, while special steel products, alloy steel... still have to import.
“Therefore, the steel industry proposed, the Ministry of Industry and Trade develops a strategy for the development of the steel industry in the coming time in association with the circular economy and the digital economy; increasing capacity and technology in the steel industry,” said Mr. Da.
The Vietnam Steel Association also asked its member businesses to provide information on plant capacity and production and sales plans in the second quarter of 2021 and expected in 2021 for the Association to summarize and report to the agency. government agencies, providing sufficient information to steel consumers, contributing to ensuring market stability.
Representative of the Ministry of Industry and Trade, Mr. Do Thang Hai, said that the ministry will give priority to formulating policies for businesses to develop healthily and contribute to the development of the country. The Ministry has actively participated in, received and resolved difficulties and problems of enterprises in the steel industry; At the same time, he highly appreciated the proposals related to the development of steel industry development policies.
According to Minister of Industry and Trade Nguyen Hong Dien, in order to increase the capacity of the steel industry, it is necessary to promote development in the direction of "shortcuts, taking the lead", applying new technologies, while meeting the needs in construction, both meet important input materials for the mechanical engineering industry.
Minister Nguyen Hong Dien pointed out that, first of all, it is necessary to focus on researching and building strategies, planning and policies strong enough, synchronous and feasible to realize the development goals of the steel industry. At the same time, creating a premise for the process of industrialization and modernization of the country.
Along with that, gradually forming an investment fund from the state budget, socialization sources, and the contributions of enterprises in the steel industry to research and invest in laboratories, to produce products. special steel. From there, to meet the input materials of other manufacturing industries; forming a chain of enterprises producing products after special steel, not only raw materials but also finished products…
Currently, the Ministry of Industry and Trade is continuing to coordinate with relevant agencies and units to conduct research on measures to promote and increase the domestic production of finished steel products, basically meeting the domestic demand in accordance with the requirements of the Ministry of Industry and Trade. direction of the Government.
Duc Dung (TTXVN)
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