Domestic steel market expected to improve in the second half of the year

The domestic steel market may recover in the second half of 2025. Photo: Steel Association

According to a report by the Vietnam Steel Association, the domestic construction steel market continues to maintain a stable production and consumption rhythm, despite negative developments in the region and internationally. Production and sales of finished steel products increased thanks to domestic demand becoming the main driving force, in the context of declining exports due to increased trade defense measures in many countries.

According to the latest statistics, in the first 5 months of 2025, finished steel production reached 13 million tons, an increase of 9% over the same period in 2024; finished steel sales reached 13.22 million tons, an increase of 11% over the same period last year.

As for Hoa Phat Group, from the end of 2025, the group's steel design capacity will reach 16 million tons/year, focusing mainly on hot-rolled steel coils and high-quality steel for the mechanical engineering industry. The supply from Hoa Phat will contribute to supplementing domestic steel output, stabilizing the market.

Regarding prices, according to Master Vu Thi Dao, Institute of Economics and Finance, Academy of Finance ( Ministry of Finance ), the domestic steel market has been on a downward trend with the world market since 2022. Particularly for Hoa Phat steel, as of the end of June 2025, the price of CB240 rolled steel decreased by 250 - 310 VND/kg compared to the price at the end of May 2025. It can be seen that domestic steel prices remain low, while the prices of other construction materials have increased significantly compared to the beginning of 2025.

The beginning of the third quarter is usually the rainy season, construction activities are unlikely to have a breakthrough. Moreover, although the real estate sector has shown signs of warming up, it has not really improved significantly. Steel consumption may continue to remain stable, construction steel prices will fluctuate in the range of 14 - 15 million VND/ton.

However, the trend will be more positive around the end of the third quarter, especially with efforts to remove difficulties in the real estate sector and the promotion of public investment, when steel prices may have a more obvious recovery. Expectations that the increase in housing supply and public investment will be the key factors driving the growth of domestic steel output. Some projects are speeding up construction progress such as the North-South Expressway and Long Thanh Airport.

In addition, with the Government promoting the disbursement of public investment capital as it is now, steel consumption will continue to improve in the coming time, compensating for the decline in the export sector. The promotion of public investment projects will help support steel prices to some extent.

However, steel prices will not increase as sharply as other construction materials such as sand and stone due to abundant supply. Factories are also increasing production again.

Source: https://hanoimoi.vn/thi-truong-thep-noi-dia-du-bao-khoi-sac-trong-nua-cuoi-nam-710088.html