After several months of price increases, the price of construction steel has returned to a downward trend, with a decrease of about 200,000 VND per ton.

On March 11, Hoa Phat announced a price reduction of about 200,000 VND per ton for CB240 coil steel, but kept the price unchanged for D10 CB300 rebar steel. After the adjustment, CB240 coil steel is now priced at 14.14 million VND per ton, and D10 CB300 rebar steel is priced at 14.53 million VND per ton.

Similar adjustments were made by other companies such as Viet Y, Viet Duc, Kyoei, and Pomina.

VAS 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 steel by 410,000 VND per ton. After the adjustment, each ton of VAS CB240 coil steel is priced at 14.21 million VND, while D10 CB300 rebar steel is priced at 14.67 million VND.

Thus, the price of construction steel has been adjusted after six consecutive increases over the past few months. The most recent increase occurred at the end of January 2024.

According to the Vietnam Steel Association (VSA), the demand for construction steel is expected to maintain good production levels in the short term, but there are no signs of improvement in the long term. Since the beginning of the fourth quarter of 2023, the factors causing the price increase include the rising costs of raw materials (iron ore, coke, scrap, electricity), financial costs (bank interest rates, etc.), and exchange rates. Factories have had to increase prices to compensate for the rising raw material costs, even though demand remains low.

VSA predicts that competition among factories will be fierce regarding selling prices to expand or maintain market share. Currently, domestic factories are facing many difficulties due to high inventory costs, low selling prices, and financial expenses.

Source: Vietstock