Steel market sluggish, prices down
Contrary to forecasts, steel consumption in May decreased sharply compared to the previous month, forcing many businesses to lower prices by 100,000 VND to 150,000 VND per ton.
Chairman of the Steel Association - Pham Chi Cuong said that some businesses have reduced their selling prices by 100,000 VND to 150,000 VND per ton. Many units have applied stimulus measures such as promotions, transportation fee support or priority for customers paying late. "Although there are many promotions, businesses do not announce them loudly," said Mr. Cuong.
According to the Price Management Department of the Ministry of Finance, the world's steel billet prices in the first half of May decreased by about 40 USD per ton compared to the same period last month. The prices in Southeast Asian countries were at 620 - 625 USD per ton. Domestic steel consumption demand is low, so to stimulate consumption, some units also reduced 100,000 VND per ton.
Steel prices in the Northern and Central provinces are around 17,400 and 18,700 VND per kg. Southern provinces fluctuate around 17,400 - 18,800 VND per kg.
The Steel Association said that in May, the industry's consumption decreased by 60,000 tons compared to the previous month, to about 360,000 tons. The reason, according to Mr. Cuong, is that many construction enterprises are still in a state of capital shortage, and basic construction has decreased. This is clearly shown through the CPI index of the two regions. The group of housing, electricity, water, fuel and construction materials in Hanoi decreased by 1.03%, while in Ho Chi Minh City it only increased by about 1%.
The Steel Association's leaders calculated that prices are unlikely to increase in June. However, consumption may be more positive as deposit interest rates continue to fall and business support solutions begin to "penetrate" into businesses.
Previously, experts predicted that in May, steel prices could increase due to the increase in billet and scrap steel prices. In addition, the message of loosening real estate credit and lowering deposit interest rates has affected investors' psychology and in the long term, the real estate market may gradually warm up.
According to Vnexpress - H
