Hoa Phat Hung Yen Steel announced a reduction of 200,000 VND/ton (8$) (excluding VAT) for construction steel coils, effective from March 19, 2024, applicable to the Northern region. Similarly, Viet Duc Steel also announced discounts for VGS steel coil types in the Northern and Central regions.
These price reductions mark an end to over four months of continuous price increases. With significant decreases in billet and scrap prices, the trend of price decline is expected to continue.
According to the Vietnam Steel Association (VSA), construction steel production is forecasted to decrease by 17% compared to the previous month and by 12% compared to February 2023, amounting to 833,152 tons in February. Sales are expected to decline by 41% compared to the previous month and by 33% compared to the same period in 2023, totaling 594,811 tons.
Before the Tet New Year, the competition among businesses to stock up due to rising prices led to shortages and reduced production in factories. Consequently, manufacturing plants are now trying to import as much output as possible as stock levels diminish.
However, due to increased imports and weak demand post-Tet New Year, demand has decreased despite the onset of the construction season. This has led to price declines and reduced consumption by businesses. Steel rolling mills are forced to halt operations due to large inventories.
The Vietnam Steel Association (VSA) predicts positive signals for the steel market in 2024, with steel consumption expected to increase by 6.4% to approximately 21.6 million tons.
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