Domestic Steel Prices Continue to Decrease

Hoa Phat and Viet Duc steel companies have just announced a reduction of 200,000 VND/ton for rebar steel of all kinds. This is the second price reduction since the beginning of July

Specifically, Viet Duc Steel Group JSC (VGS) announced an adjustment in the prices of VGS rebar steel of various types, with a decrease of 200 VND/kg (excluding VAT). The scope of application is in the Northern and Central markets.

The price adjustment notice from Viet Duc takes effect immediately from today, July 5, 2024, until further notice.

In the announcement, Viet Duc Steel stated that the reason for the price reduction is due to a recent decrease in billet and raw material prices, ensuring that the selling price of products aligns with input costs.

Following the downward trend of Viet Duc, Hoa Phat - Binh Dinh One Member Limited Liability Company also issued a notice to reduce the price of various types of rebar steel by 200,000 VND/ton due to fluctuations in billet and raw material costs.

The notice takes effect immediately from July 5, 2024. The scope of application includes Binh Dinh, Phu Yen, Gia Lai, Kon Tum, Dak Lak, Khanh Hoa, and Ninh Thuan.

Other brands are still maintaining stable prices.

The decrease in steel prices creates favorable conditions for the industrial design and construction of factory.

Previously, on July 1, the steel market recorded a reduction of 100 VND/kg in the price of CB240 steel for the Hoa Phat brand in the Northern region. For other areas, the price of CB240 steel and D10 CB300 remained unchanged.

Thus, just entering July, the market has recorded two consecutive price reductions for both CB240 coil steel and various types of rebar steel. Although these two reductions involve few companies and a limited scope, it indicates that the steel market will experience more price fluctuations in the near future due to changes in billet and raw material costs.

Additionally, analysts predict that in the second half of the year, the steel market is likely to continue its recovery thanks to several positive factors: Vietnam's good economic growth, improved quarterly growth indicators, continued public investment, and the government's focus on resolving issues in the real estate and construction sectors, creating a foundation for domestic steel demand to continue recovering.

Notably, new policies and some laws newly approved by the National Assembly, such as the 2023 Real Estate Business Law, the 2023 Housing Law, and the 2024 Land Law, will contribute to improving demand in the real estate sector in the latter half of the year.

With these factors, the market is forecasted to recover better in the second half of the year for the steel industry. Moreover, positive signals regarding political stability, a good investment environment, and commitments from foreign investors, along with expected continued FDI inflows, will create a boost for the domestic steel market in particular and the construction materials market in general in the second half of this year. 

Thuy Vy - Journal Of Construction

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