After several months of price increases, the price of construction steel has begun to fall, with a decrease of approximately 200,000 VND per ton.

On March 11, Hoa Phat announced a reduction in the price of CB240 coil steel by around 200,000 VND per ton, while the price of D10 CB300 rebar remained unchanged. Following this adjustment, CB240 coil steel is now priced at 14.14 million VND per ton, and D10 CB300 rebar is priced at 14.53 million VND per ton.

Similar price adjustments have been observed across other companies such as Viet Ý, Viet Đức, Kyoei, and Pomina.

However, VAS steel made a different adjustment, reducing the price of CB240 coil steel by 200,000 VND per ton but increasing the price of D10 CB300 rebar by 410,000 VND per ton. After the adjustment, VAS CB240 coil steel is priced at 14.21 million VND per ton, while D10 CB300 rebar is priced at 14.67 million VND per ton.

This marks a price adjustment following six consecutive increases over the past few months, with the most recent increase occurring at the end of January 2024.

According to the Vietnam Steel Association (VSA), short-term demand for construction steel remains strong, but there are no significant signs of improvement in the long term. Since the beginning of Q4 2023, price adjustments have been driven by increases in raw material costs (iron ore, coke, scrap, electricity), financial costs (bank interest rates), and exchange rate fluctuations. Steel mills have had to increase prices to offset rising material costs, despite low demand.

VSA forecasts that competition among mills will intensify as they vie for market share. Domestic mills are currently facing challenges due to high inventory costs, low selling prices, and financial expenses.

Source: VietstockVietstock