Steel firms drop prices for the third time this year

The price of rolled steel has decreased by a total of $20.83 per tonne since the start of the year.

The construction sector overall is facing difficulties due to limited financial capabilities and a restricted market, leading to a high withdrawal rate of businesses in the first three months of 2024.

Data from the General Statistics Office shows that in the first quarter, 3,208 new construction businesses were established; 2,918 construction businesses resumed operations, and an average of about 2,300 new businesses entered the market each month.

However, according to state-run VNSteel, during the same period, 7,064 construction businesses suspended business temporarily; 369 businesses completed dissolution procedures, and an average of nearly 2,478 businesses withdrew from the market each month.

At the AGM of Hoa Sen Group JSC (HSG) in March, chairman of the Board of Directors Le Phuoc Vu said, "Steel prices are likely to be lower this year than last, so the company has to reduce its profit forecast due to the adverse conditions."

The price of Vietnam America Steel's CB240 rolled steel D10 and CB300 ribbed steel are at $0.59 per kg. Meanwhile, Hoa Phat sees CB240 rolled steel down to $0.58/kg and D10 CB300 ribbed steel down to $0.60/kg.

This action reflects the changes in input material prices and the Vietnamese Steel Association believes that domestic factories are facing many difficulties due to high inventory prices, low selling prices, and increased financial costs.

Phan Ho Chau Nam, deputy general director of Nhan Luat Investment and Steel Trading Holding Corporation, told VIR, "Nhan Luat is intensifying market development efforts, ensuring quick access to customers and expanding the company's sales."

Although the construction market is facing many difficulties and construction steel prices are still trending downward, market sentiment has gradually improved as the downward trend has begun to slow in the recent adjustments. Additionally, the early implementation of the Land Law 2024 in July is expected to stimulate the real estate market.

Vietnam's steel sector revitalised in 2024 In the early days of January, the domestic construction steel market underwent its first price adjustment as manufacturers collectively raised prices for rolled steel and various reinforced steel types by a common margin of $8.33 per tonne.

The upward wave of steel stock prices Steel stock prices have skyrocketed in 2023 and are projected to continue their strong upward trend in 2024, driven by robust public investments and a flourishing real estate sector that was boosted by the approved Land Law amendment on January 18.

Exporting pressures heaped onto steel enterprises When competing with China’s massive output, Vietnam’s exports of steel are being hampered.