Steel prices drop sharply - VnExpress Business

Construction steel prices have just dropped by VND200,000 per ton, extending a 10-session decline streak, bringing each ton down to VND14.5 million, the lowest in the past two months.

Hoa Phat has just adjusted the price of D10 CB300 rebar down by VND200,000, to VND14.69 million per ton. Earlier this month, the company also adjusted the price of CB240 coil steel down to VND14.49 million, down VND210,000 per ton.

Brands such as Viet Y, Viet Duc, Southern Steel, Viet Nhat, Thai Nguyen Steel, and TQIS also applied similar price reductions on two popular types of construction steel. Thus, steel prices have dropped 10 consecutive times since the beginning of April until now, with a cumulative decrease of 1.5 million VND.

According to VSA, domestic demand is weak, so factories have continuously adjusted prices to increase competitiveness. Reports from securities companies also predict that steel prices will remain stable or decrease due to the previous poor consumption situation.

However, this price reduction has somewhat improved the production and consumption situation in the market. Figures from the Vietnam Steel Association (VSA) show that in May, the country produced more than 812,000 tons of construction steel, up 14% compared to the previous month. Meanwhile, the consumption volume recorded more than 927,000 tons, up 26% compared to April and the best level since the beginning of the year.

This is the second consecutive month that steel consumption is greater than production. The gap between steel consumption and production increased nearly five times compared to the previous month, reaching more than 115,000 tons. This shows that market demand is gradually increasing.

Recent figures from Hoa Phat Group (HPG), which holds about one-third of the country’s construction steel market share, also show an improvement. The company sold 530,000 tons of various types of steel in May, up 16% from the previous month. Of this, construction steel reached 284,000 tons, up 33% from April.

In the coming time, BIDV Securities (BSC) believes that steel prices will still be under adjustment pressure. In the second half of this year, price movements will depend on the recovery level of market demand.

Steel business leaders all said that the most difficult things for the industry happened in the second half of last year, the situation improved in the first quarter and there will almost certainly be profits in the second quarter.

However, VNDirect Securities Company noted that demand will remain weak throughout this year. Total consumption of construction steel and galvanized steel is likely to decrease by 9.2% and 7% year-on-year, to 9.5 million tons and 3.9 million tons, respectively. Therefore, businesses will still have to make great efforts to complete their business plans for the year.

Siddhartha

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