Construction steel prices have risen sharply.

Recently, the ex-factory price of construction steel (excluding VAT) at domestic factories has increased significantly.

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Regarding construction steel, in July, production was estimated at approximately 780,000 tons, an increase of 24.1% compared to the same period in 2016 and a 7% increase compared to the previous month, while steel consumption was estimated at approximately 740,000 tons.

According to a report by the Price Management Department of the Ministry of Finance, in July 2017, due to the impact of steel billet and scrap steel prices on the world market, the price of construction steel generally increased by 150-300 VND/kg, depending on the type and brand of steel. Currently, the selling price at factories, excluding discounts and VAT, is around 10,000-12,300 VND/kg for steel coils and around 10,100-12,400 VND/kg for steel bars.

Specifically, the price of construction steel at Viet Y Steel Plant is currently selling at 12.38 - 12.58 million VND/ton excluding VAT, while Hoa Phat's rebar (20mm diameter) is priced at 12.180 - 12.38 million VND/ton excluding VAT. Some smaller steel mills even have rebar prices reaching 12.90 million VND/ton. These prices represent a 15-17% increase compared to the end of Q2 2017.

Retail prices for construction steel in the northern and central provinces range from 10,100 to 12,500 VND/kg; in the southern provinces, they range from 10,200 to 12,800 VND/kg.

Regarding the global market, the quoted prices for steel billets in July 2017 tended to increase by approximately 5-10 USD/ton compared to June 2017. Specifically, the quoted price for steel billets CFR East Asia was around 410-425 USD/ton, while the quoted price for CIS billets was around 385 USD/ton FOB Black Sea.

According to industry experts, the reasons for the increase in steel prices are: the upcoming construction season, increased construction demand, but the main reason is the impact of Chinese steel prices. The restructuring of China's steel industry, the shutdown of environmentally polluting factories, and the high demand for steel in China due to increased infrastructure investment have caused a sharp increase in global prices for steel billets and hot-rolled steel since May. Upstream raw materials such as iron ore, coking coal, and scrap steel have also increased significantly.

According to Construction Newspaper