Construction steel prices fall further
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The price of Vietnamese construction steel dropped to below VND17 million ($732) per ton, but contractors said this was still high.
The Viet Duc Steel Company said it has lowered prices of steel bars and coils by VND300,000 per ton from July 1, while the Thai Nguyen Iron & Steel Joint Stock Corporation reduced the prices of steel coils by VND300,000 to around VND16.7 million per ton.
The prices of a ton of steel coils produced by the Hoa Phat Group and the Vietnam-Italy Steel Joint Stock Company are VND300,000-600,000 lower than in June.
The decline in prices of construction steel in the Vietnamese market over the past few weeks has been attributed to lower prices of steel billets in the world market.
The most-traded steel rebar on the Shanghai Futures Exchange, for October delivery, closed down 2.9 percent at 5,014 yuan ($774.60) a ton.
Another contributing factor is weaker demand for construction materials in some localities that have already entered the rainy season.
However, many construction contractors said the prices of domestic steel products were still high, cutting deep into their profit, leaving them with smaller profits. Steel costs account for 10-30 percent of a construction project.
Vietnam produced nearly 12 million tons of steel products of different kinds in the first five months of this year, a year-on-year rise of more than 38 percent while exporting nearly 2.8 million tons, up 80 percent.
The country exported 1.1 million tons of steel to China in the five-month period, twice that of last year, according to the General Department of Vietnam Customs.
Questions & Answers
Q.What is causing the recent fall in Vietnamese construction steel prices?
What is causing the recent fall in Vietnamese construction steel prices?
The decline in prices is attributed to lower prices for steel billets in the global market. Weaker demand for construction materials in some areas due to the rainy season is also a contributing factor to the falling prices.
Q.Which specific companies have reduced their steel prices recently?
Which specific companies have reduced their steel prices recently?
Viet Duc Steel Company lowered prices of steel bars and coils. Thai Nguyen Iron & Steel Joint Stock Corporation reduced steel coil prices. Hoa Phat Group and Vietnam-Italy Steel Joint Stock Company also lowered their steel coil prices compared to June.
Q.How much of a construction project's cost is typically made up of steel expenses?
How much of a construction project's cost is typically made up of steel expenses?
Steel costs are a significant component of construction projects. The article states that steel expenses typically account for 10-30 percent of the total cost for a construction project.
Q.How much steel did Vietnam export in the first five months of this year, and how does this compare to last year?
How much steel did Vietnam export in the first five months of this year, and how does this compare to last year?
Vietnam exported nearly 2.8 million tons of steel products in the first five months of this year, an 80 percent increase year-on-year. Exports to China alone were 1.1 million tons, double that of last year.