Soaring raw material prices coupled with delays in shipping due to the COVID-19 pandemic significantly pushed up steel prices recently, according to the Ministry of Industry and Trade.
The price of steel in the domestic market increased by up to 45 per cent in recent months. The ministry’s Industry Agency said that the input costs of the steel industry largely depended on the prices of raw materials in the global market which has seen whopping increases recently.
Viet Nam was reliant on imported raw materials for steel production, including iron ore, scrap steel, fat coal and graphite electrodes.
It was predicted that Viet Nam would have to continue importing many types of raw materials for steel production this year with more than 18 million tonnes of iron ore, 6 - 6.5 million tonnes of scrap steel, 6.5 million tonnes of fat coal and 10,000 tonnes of graphite electrode.
The prices of these raw materials were predicted to remain at high levels, which would directly affect steel production in the domestic market. The steel sector was expected to run a trade deficit this year, after a deficit of more than US$6.4 billion in 2020.
