Steel prices fall by another half million dong per ton.

A number of steel brands have announced further price reductions starting May 27th. Specifically, Hoa Phat Steel in the North reduced the price of CB240 steel by 210,000 VND/ton, bringing it down to 17.64 million VND/ton. Similarly, Hoa Phat reduced the price of D10 CB300 steel by 270,000 VND/ton, to 18.01 million VND/ton. In the South, Hoa Phat reduced the price of CB240 steel coils and D10 CB300 steel bars by 370,000 VND/ton, with prices at 17.56 million VND/ton and 17.91 million VND/ton respectively.

Construction steel prices are falling.

Kyoei Steel also adjusted its selling prices downwards for CB240 and D10 CB300 steel in the North by VND 500,000/ton and VND 390,000/ton respectively, bringing the prices down to VND 17.57 million/ton and VND 17.88 million/ton. The same two types of steel in the South also saw price reductions of VND 470,000/ton and VND 370,000/ton respectively, down to VND 17.56 million/ton and VND 17.91 million/ton.

Following the same trend, the Viet-Italian steel brand also lowered the selling prices of its two steel products, CB240 and D10 CB300, from 410,000 VND/ton and 300,000 VND/ton respectively, to 17.57 million VND/ton and 17.93 million VND/ton.

Viet Duc Steel brand also reduced the price of CB240 steel coils by 490,000 VND/ton and D10 CB300 steel bars by 390,000 VND/ton. The selling prices of these two products after the reduction are 17.32 million VND/ton and 17.98 million VND/ton, respectively.

Southern Steel brand also adjusted prices down by 410,000 VND/ton for CB240 steel, bringing the price down to 17.57 million VND/ton; and reduced the price of D10 CB300 steel by 300,000 VND/ton, bringing the selling price down to 17.88 million VND/ton.

This is the second consecutive steel price reduction in just over half a month. Ten days ago, many businesses also reduced steel prices by 300,000-450,000 VND/ton. Thus, in less than half a month, domestic steel prices have decreased by nearly 1 million VND/ton.

Since the beginning of the year, domestic construction steel prices have undergone 10 adjustments, including 7 increases and 3 decreases. Steel prices are now 1-1.5 million VND/ton lower than at the beginning of April. Specifically, Hoa Phat's CB240 steel in the North decreased by 1.48 million VND/ton; Viet Y's CB240 steel decreased by 1.32 million VND/ton; and Southern Steel's CB240 steel decreased by 1.42 million VND/ton.

The reason for the sharp drop in domestic steel prices after a period of rapid increase is believed to be the downward trend in the prices of steel billets and input materials. The continuous decline in raw material prices for steel production since the end of March has caused the steel market to stagnate.

The "zero COVID" policy caused a sharp decline in China's steel demand. Since China is the world's largest steel consumer, this led to a decrease in global steel consumption. The reduced demand, coupled with lower input material prices, put downward pressure on domestic construction steel prices.