Steel prices today, May 20th: Domestic market stable, world iron ore prices fall to a two-week low.
While domestic construction steel prices remained stable, world iron ore prices fell sharply to $107.7 per ton due to the impact of China's capacity-restricting policies.
During the trading session on May 20th, the price of construction steel in the Vietnamese market continued to remain stable. Meanwhile, on the international market, iron ore prices retreated to their lowest level in over two weeks after China announced new regulations aimed at tightening steel industry capacity.
Trends in domestic construction steel prices
Surveys at major businesses show that listed prices have not been adjusted. Specifically, Hoa Phat Group maintains a price of 15,430 VND/kg for both CB240 and D10 CB300 steel lines. In the northern region, Viet Y Steel brand lists CB240 steel at 15,150 VND/kg and D10 CB300 steel at 14,700 VND/kg.
| Trademark | Type of steel | Listed price (VND/kg) |
|---|---|---|
| Hoa Phat | CB240 / D10 CB300 | 15,430 |
| Viet-Italian Steel | CB240 | 15,150 |
| Viet-Italian Steel | D10 CB300 | 14,700 |
| Viet Duc Steel | CB240 | 15,250 |
| Viet Duc Steel | CB300 | 15,050 |
Other brands such as Pomina, Southern Steel, and Northern VJS are also maintaining stable prices from previous sessions, with no signs of upward or downward adjustments in the short term.
Pressure from the global iron ore market.
On the Singapore Exchange, iron ore futures prices fell by $0.50 to $107.70 per ton. On the Dalian Commodity Exchange, June 2026 iron ore futures fell by 6.5 CNY to 818 CNY per ton. Notably, during the trading session, the price briefly touched 794 CNY per ton, the lowest level recorded since April 30th.
The main reason for this decline stems from China's implementation of a stricter capacity swap mechanism. Under the new regulations, to add 1 ton of new steel capacity, businesses must eliminate at least 1.5 tons of existing capacity. This policy aims to address the long-standing overcapacity problem while reducing future demand for raw materials.
Market analysis
According to analysis from Morgan Stanley, this tightening of policy will accelerate the restructuring and consolidation of the steel industry in China in the long term. However, data from Mysteel shows that short-term demand remains relatively stable, with seaborne iron ore trading volume on May 18 reaching approximately 1.51 million tons, double that of the previous session.
For finished steel products on the Shanghai Futures Exchange, rebar futures prices fell to 3,156 CNY/tonne. Other commodities such as hot-rolled coil and wire rod also recorded slight declines of 0.32% to 0.53% due to cooling input costs.
