Steel prices today, January 20th: Domestic prices surge by 500 VND/kg despite global declines.
The domestic construction steel market recorded a sharp increase of up to 500 VND/kg at many businesses. Conversely, international steel and iron ore prices fell sharply due to the impact from the Chinese market.
On January 20th, the steel market witnessed a clear contrast in trends, with domestic construction steel prices rising sharply, while steel and iron ore prices on international exchanges continued to decline. The global market downturn was primarily driven by cautious sentiment stemming from the weakening Chinese real estate sector and concerns about a medium-term oversupply of iron ore.
International market: Steel and iron ore prices hit rock bottom.
On the Shanghai Futures Exchange (SHFE), the price of rebar for September 2026 delivery fell by another 8 yuan, to 3,184 yuan per ton. This trend reflects declining investor confidence in steel demand in China – the world's largest steel consumer.
On the Dalian Commodity Exchange (DCE), the May iron ore contract fell 2.58% to 794 yuan per ton (equivalent to $114.03 per ton). This is the lowest level since January 6th. Similarly, on the Singapore exchange, the February iron ore contract also fell 1.54% to $104.7 per ton.
The main reason for this decline is a series of new economic data from China showing a sharp weakening in December of new home prices, real estate investment, and sales of homes by floor area. In addition, supply pressure increased as China received its first shipment of iron ore from the Simandou mine (Guinea). This new supply, coupled with the country's 2025 crude steel production falling to its lowest level in seven years, has exacerbated concerns about oversupply.
Domestic construction steel prices have risen sharply across the board.
In stark contrast to the international context, construction steel prices in the Vietnamese market have seen a sharp upward adjustment at many major companies across all three regions. According to data from SteelOnline, the common increase is several hundred dong per kilogram.
The specific developments in these areas are as follows:
- In the North:Companies such as Hoa Phat, Viet Duc, and Viet Y have simultaneously increased the prices of steel coils and ribbed steel bars. Notably, some companies adjusted prices upwards by as much as 500 VND/kg compared to the previous period.
- In Central Vietnam:Steel prices remained high with slight differentiation between brands, but overall maintained an upward trend.
- In the South:Large businesses are keeping prices high to cope with rising input costs and in anticipation of stable construction demand at the beginning of the year.
Analysts point out that the mismatch between domestic and international markets indicates that domestic steel prices are now heavily influenced by domestic supply and demand factors and businesses' cost strategies, rather than being entirely dependent on international exchanges. This poses a new cost challenge for contractors and construction companies during project implementation in early 2026.
