In an unparalleled development, Vietnam’s domestic construction steel prices have experienced their 16th continuous drop, reaching their lowest point since the close of 2020.
This persistent price decline shows no indications of relenting, as local steel companies announce significant price cuts ranging from 100,000 to 210,000 Vietnamese dong per metric ton for D10 CB300 rebar products.
Recent data from Steel Online reveals that in this latest wave of price reductions, Thép Pomina in the Central region enacted the most notable cut, decreasing prices by 210,000 Vietnamese dong per metric ton for D10 CB300 rebar to 14.48 million Vietnamese dong. In a similar move, the well-known brand Thép Mỹ reduced its D10 CB300 rebar prices by 200,000 Vietnamese dong per metric ton, adjusting the price to 13.6 million Vietnamese dong.
Concurrently, other steel brands consistently lowered prices by 100,000 Vietnamese dong per metric ton for D10 CB300 rebar. For instance, Thép Việt Sing in the Northern region set prices at 13.7 million Vietnamese dong per metric ton, while leading steel manufacturer Thép Hòa Phát announced a 100,000 Vietnamese dong per metric ton price cut for D10 CB300 rebar across the North, Central, and South regions, with prices now at 14.04 million, 13.89 million, and 13.99 million Vietnamese dong, respectively.
Additionally, Thép Việt Ý in the North region joined this trend by reducing D10 CB300 rebar prices to 13.79 million Vietnamese dong per metric ton. Thép Việt Nhật also participated in the decreasing trend, lowering its D10 CB300 rebar prices to 13.6 million Vietnamese dong per metric ton, while Thép Việt Đức in the Central region made similar adjustments, with prices now at 14.24 million Vietnamese dong per metric ton for D10 CB300 rebar.
Throughout the year, domestic construction steel prices have followed a steady downward path, with 16 successive decreases noted across various brands. Currently, steel prices are hovering around the 13-14 million Vietnamese dong per metric ton range, which is the lowest they have been since the end of 2020.
The Vietnam Steel Association (VSA) attributes this enduring decline in local steel prices to weak consumption demand. Additionally, competition with affordably priced steel exports from China, due to their own consistent price cuts, is further exacerbating the struggles in the local market—a trend expected to persist in the near future.
Despite these ongoing reductions in steel prices, demand continues to be sluggish, leading to significant profit losses for local steel enterprises. On the international front, steel futures for May 2024 on the Shanghai Futures Exchange have fallen by 14 Chinese yuan to 3,625 Chinese yuan per metric ton.
As Vietnam’s construction steel market enters a phase of transformation, prospective buyers interested in Vietnamese steel products stand to benefit from the current price reductions. For precise sourcing information and procurement inquiries, reliable sources advise directly reaching out to established local steel manufacturers.
In summary
The 16 successive cuts in Vietnamese construction steel prices have resulted in a three-year low. This decline is attributed to a blend of subdued consumer demand and competition with inexpensive Chinese steel exports. As these challenges remain, potential buyers interested in acquiring Vietnamese steel products are encouraged to engage directly with reputable local manufacturers for trustworthy sourcing information.