Steel 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.

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.

"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 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.

Exports also benefited from production disruptions in major global steel producers such as the EU, U.S., India, Japan and South Korea, which saw their 11-month 2020 production fall 15 percent, 18 percent, 12 percent, 17 percent and 7 percent year-on-year, respectively, according to the World Steel Association.