Construction Steel Prices Fell Sharply
Steel NewsDate: 27-06-2023 by: Nhu Quynh
The sharp drop in input material prices and abundant supply is why manufacturers lower the costs of construction steel products to stimulate demand. This is also the lowest price drop in the past two months in the Vietnamese steel market.
From the beginning of the year until now, the price of construction steel in the Vietnamese market has continuously decreased sharply. Specifically, the price has dropped by 200,000 VND/ton (equivalent to 8.50 USD/ton), the 10th decline in a row. Construction steel costs around 14.5 million VND/ton to 15.5 million VND/ton (depending on product and brand). This price level is equivalent to the steel price in October 2022 - when the steel demand begins to decline sharply.
Companies such as Hoa Phat, Viet Y, Viet Duc, and Viet Nhat have reduced the prices of their products since the beginning of April, with a cumulative reduction of up to 1.5 million VND/ton.
The Vietnam Steel Association believes the recent decline in domestic construction steel prices is due to weak demand and lower input material costs. However, the price reduction has also boosted demand for the production and consumption of steel products in the last 2 months. Specifically, in May, there were 812,000 tons of construction steel produced, up 14% from April. Steel consumption also reached 927,000 tons, up by more than 26%; this is the highest growth rate since the beginning of this year. This is the second month in a row that steel consumption exceeds production. The difference between consumption and steel production is more than five times higher than last month, reaching more than 115,000 tons. This shows that market demand is gradually recovering.
In the first 5 months of 2023, Vietnam's steel industry was continuously under pressure from falling domestic market demand and export pressure from steel-exporting countries to Vietnam. With the price reduction rate to compete, it is forecasted that steel prices will continue to decrease in the coming time.
In the Vietnamese market, Hoa Phat Group is the leading wing of the steel industry, accounting for 34% of the construction steel market share. Mr. Tran Dinh Long - Chairman of the Board of Hoa Phat Group, said that the most challenging period of the steel industry has passed. Specifically, Hoa Phat sold more than 530,000 tons of all kinds to the market in May alone, up 16% from April. In which construction steel sold 284,000 tons, up 33%.
With the recent sharp drop in steel prices, Vietnamese enterprises have promoted exports to reduce excess products. As a golden time in terms of prices, the cost will be optimized if importers proceed to import steel from Vietnam. Famous for quality steel manufacturers such as Hoa Phat, Nam Kim, Hoa Sen, Dong A... These will be the suppliers of construction steel products with international quality and reasonable prices.
Above is information about construction steel prices in the Vietnam market; the price list will continue to be updated. If you want a specific quote, please get in touch with us.