Oct construction steel sales in Vietnam hits three-year high on strong domestic demand

Construction steel sales in Vietnam reached over 1.25 million tons in October, marking a nearly 44% year-on-year increase and the highest level since March 2022.

Sales exceeded total steel output by 185,000 tons last month, driven by rising domestic demand, according to the Vietnam Steel Association (VSA).

In the first 10 months of this year, construction steel sales rose 11% year-on-year to 9.96 million tons, signaling a recovery in purchasing power.

Meanwhile, construction steel prices have been climbing back to mid-June levels.

Industry leader Hoa Phat Group raised the price of CB240 rolled steel five times, increasing it by VND510,000 ($21) to VND13.94 million ($550) per ton.

Similarly, the price of D10 CB300 ribbed steel rose by VND740,000 ($29) from mid-September to VND14.1 million ($557) per ton.

In October, steel sales grew by 9.4% month-on-month and 22.5% year-on-year, reaching nearly 2.74 million tons, the VSA reported.

The association expects a positive outlook for the industry through the rest of the year, supported by the government’s post-typhon Yagi recovery policies. Additionally, the fourth quarter is typically favorable for construction activities, which could drive a more dynamic steel market.

MB Securities forecasts that domestic construction steel prices could rise by 5% from the August low, averaging $571 per ton. For next year, prices are projected to increase by 7% on anticipated higher demand and reduced competitive pressure from China.