Steel prices hit 3-year low
In this article (4)
The price of steel has plunged to the lowest in three years to around VND13.5 million ($562.09) per ton amid declining demand.
Hoa Phat Group, which accounts for 30% of the domestic market, has lowered its rolled steel prices by 2.17% from a week ago to around VND13.53 million per ton.
Other companies such as VAS, Tungho and Thep My sold their steel at the same price. This is the 18th decline in steel prices this year.
Although August is considered a high time for construction work, sellers have been posting low sales.
Hung Vu, a steel seller in Hanoi’s Ha Dong District, said that since early July sales have plunged 60% year-on-year. Most manufacturers have cut production.
Hoa Phat in the first seven months produced nearly 3.5 million tons of steel, down 30% year-on-year. Its sales also dropped 23% to 3.46 million tons.
In the first seven months, Vietnam imported 31% less steel than last year, according to the Ministry of Industry and Trade.
The Vietnam Steel Association expects the price drop to persist in the coming months.
Vietcombank Securities said in a note that prices would not recover this year as demand from China remained low.
Questions & Answers
Q.What is the current price of steel and how does this compare to recent history?
What is the current price of steel and how does this compare to recent history?
The price of steel has fallen to approximately VND13.5 million ($562.09) per ton. This marks the lowest price point observed in the last three years, reflecting a significant decline in the market.
Q.How have major steel producers been affected by the price drop this year?
How have major steel producers been affected by the price drop this year?
Hoa Phat Group, a key market player, has cut its rolled steel prices by 2.17% in the past week. Its production fell 30% and sales dropped 23% in the first seven months, indicating significant impact.
Q.What is the outlook for steel prices in the near future?
What is the outlook for steel prices in the near future?
The Vietnam Steel Association anticipates that the current price decline will continue in the coming months. Vietcombank Securities further predicts that prices will not recover during this year due to low demand from China.
Reader pulse
How will sustained low steel prices impact retail development in Asia?
18,583 votes so far