How Do Freight Rates and Exchange Rates Impact Imported Steel Prices?

In steel import activities, the purchase price from suppliers is only part of the total cost. In reality, ocean freight and the USD/VND exchange rate are two key factors that directly affect the landed cost, thereby influencing profit margins and a company’s competitiveness.

🔹 Ocean Freight

Freight rates fluctuate continuously in line with the global logistics market, influenced by peak seasons, port congestion, container shortages, and especially fuel price volatility. When freight rates increase, the cost of imported steel rises accordingly; conversely, when freight declines, businesses have an opportunity to optimize costs. However, these fluctuations are often rapid and unpredictable, potentially disrupting procurement plans if not closely monitored.

🔹 USD/VND Exchange Rate

Since most steel transactions are settled in USD, exchange rates have a direct impact on import costs. When the USD appreciates, businesses must pay more for the same shipment, leading to higher landed costs. On the other hand, a weaker USD provides cost advantages for importers. Notably, even small fluctuations in exchange rates can create significant differences, especially for large-volume orders.

🔹 Landed Cost Outlook

In the current context, with freight rates continuing to fluctuate cyclically and exchange rates remaining unstable, imported steel costs are expected to remain volatile. This requires businesses to closely track market movements and adopt flexible purchasing strategies to mitigate risks.

🏭 Solutions from Tien Loi Group

Tiến Lợi Group not only supplies steel products but also provides tailored procurement solutions based on market conditions, helping customers control costs and improve business efficiency.

📞 Contact us today for the latest market updates and professional consultation.

Office: 152 Pho Nhon, Tay Tuu District, Hanoi, Vietnam

Email: info@tienloigroup.vn

Hotline: +84 2433 861 188