The General Statistics Office pointed out 3 reasons why steel prices skyrocketed

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Steel billet price is at 633 USD/ton, up 30 USD/ton compared to the beginning of March 2021. Photo: Urban Economy

According to the General Statistics Office, the industrial production price index in April 2021 increased by 0.38% over the previous month and by 2.41% over the same period last year. 0.8%.

In which, the producer price index of metal products in April increased by 2.25% compared to the previous month and 11.18% over the same period in 2020; 4 months average increase by 7.7%. In the group of metal products, the PPI of iron and steel products in April increased by 4.23% compared to the previous month and increased by 27.68% compared to the same period last year. 23.15%.

The General Statistics Office pointed out three reasons for the increase in prices of iron and steel products.

Firstly, the price of input materials such as iron ore, scrap, steel billet and transportation costs increased the price of iron and steel products. As of April 6, the price of billet at US$ 633 per ton, up $30/ton compared to the beginning of March and increasing by about $200/ton compared to the same period in 2020, the impact increases the price of iron and steel in the country.

According to the General Statistics Office, in the North, iron and steel prices in April ranged from 14.2-15.4 million VND/ton, up 3.3% compared to March, up 31.8% over the same period last year. last year. In the South, the price of iron and steel in April fluctuated from 15.5-16.4 million VND/ton, up 4.9% compared to March, up 24.9% over the same period last year.

Second, the global supply of iron and steel decreased due to China implementing a policy of controlling output in the Tangshan area combined with controlling environmental pollution in iron ore producing cities.

In addition, China’s policy of importing scrap affects the global scrap market in 2021 after China controlled the Covid-19 epidemic and implemented economic stimulus measures such as infrastructure investment to start implementing the 5-year socio-economic development plan (2021-2025).

As a result, China’s demand for iron and steel imports increases and impacts on global iron and steel prices. In Europe and the US, the shortage of iron and steel supply due to the impact of the Covid-19 epidemic and the long delivery time of input materials for production are the main reasons for the sharp increase in iron and steel prices.

Thirdly, in Vietnam, the Covid-19 epidemic is well controlled, production recovers, construction activities flourish. Production and trading units intensify the import of input materials for the production of iron and steel products, construction works are urgently deployed, and increase the purchase of iron and steel products in order to prevent the increased prices affecting the construction costs.

These factors affect domestic iron and steel prices to increase sharply. Along with that, the demand for iron and steel on the market in late 2020 and early 2021 will increase due to the promotion of disbursement of public investment in infrastructure construction.

Source: ndh.vn – Translated by fintel.vn