Retail steel prices hit record low in nearly 2 years

By Trang Nguyen
Wed, October 19, 2022 | 4:42 pm GMT+7

Retail steel prices in Vietnam dropped Wednesday to around VND14 million ($572) per ton, equivalent to the level at end-2020.

Within more than one month, Hoa Phat Group's steel has decreased by VND1.2-1.3 million ($53) per ton. Hoa Phat, listed on the Ho Chi Minh City Stock Exchange as HPG, is among the largest steel companies in Vietnam by market value.

The same reduction margin was also recorded at other brands like Vietnam-Italy Steel, Vietnam Germany Steel Pipe, Kyoei Steel Vietnam, and Vietnam-Japan Steel.

Steel products of Hoa Phat Group. Photo courtesy of the company.

Steel products of Hoa Phat Group. Photo courtesy of the company.

In August, retail steel prices in Vietnam fell by about VND4 million ($171) per ton since May 11 in 12 consecutive drops.

The country's steel prices have dropped sharply due to the decline in the world price of steel billets and input materials. Prices of steel production materials like iron ore, scrap steel, and coke at the end of the second quarter were down 40-50% compared to the previous quarter.

Besides, demand among local construction companies has declined, while steel supply is abundant and inventories high.

According to the Vietnam Steel Association (VSA), domestic demand for steel is at a low level and exports have fallen sharply as Vietnam's prices are higher than regional peers'.

In September, construction steel output recovered, reaching 1,095,745 tons, up 11.91% over the previous month and up 47.2% year-on-year.

However, sales volume reached only 920,248 tons, down 21.91% from August and up 7.8% year-on-year. Construction steel exports reached 113,158 tons, down 47.9% year-on-year.

Analysts of Steel Online, a steel distribution agent of many big brands in Vietnam, said the price of steel fluctuates strongly for many reasons. Previously, steel prices increased due to the increased price of scrap, gasoline and coal along with high demand.

In addition, the market also faces disruptions in global raw material supply and supply chains, while China restricts production due to environmental problems.

Steel prices have dropped again because the world's macro-economy is in recession, as monetary policy and other economic-political conditions fluctuate.

A representative of Steel Online said domestic demand is poor and will remain very poor in the future. "The current export situation is also slower than the same period last year."

The return of steel prices to the level suitable for the economy will help stabilize investment performance, avoid damage to contractors and stimulate construction investment. But due to cash shortage and the State Bank of Vietnam's credit tightening, the real estate sector is facing difficulties, impacting the steel industry.

Regarding the prospect of the steel industry in the second half of the year, Vietcombank Securities (VCBS) said it has not seen any positive signals. VCBS predicts that Chinese steel prices would remain at the current low level in H2 because demand has not recovered.

Meanwhile, steel producers need to release a large amount of inventories and the sharp drop in raw material and fuel prices in H2 will continue to support the selling price reduction process.

In Vietnam, the situation is similar due to the pressure to reduce prices according to world market prices. The demand for domestic steel consumption dropped sharply in Q2/2022, prompting manufacturers to lower their selling prices to quickly release inventories.

Comments (0)
  • Read More
Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

May saw a more stable picture in terms of U.S. tariff policies than April, helping lead to a renewed expansion in output and improved business confidence, says Andrew Harker, economics director at S&P Global Market Intelligence.

Economy - Mon, June 2, 2025 | 9:18 am GMT+7

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

The Ministry of Industry and Trade (MoIT) has proposed building two inter-regional renewable energy service and industry hubs in the country.

Economy - Mon, June 2, 2025 | 8:00 am GMT+7

Investors advised to take profits from stocks having risen sharply

Investors advised to take profits from stocks having risen sharply

Investors should maintain a balanced stock allocation in their portfolios and consider buying opportunities if the VN-Index retreats to the 1,300-1,320 point range, say market experts.

Finance - Sun, June 1, 2025 | 8:10 pm GMT+7

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Phu Nhuan Jewelry JSC (PNJ), a leading jewelry producer in Vietnam, rallied sharply ahead of the central bank’s Friday release of its gold market inspection findings.

Companies - Sun, June 1, 2025 | 1:14 pm GMT+7

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Emall Vietnam, which owns a network of 100 high-end business shoe stores under the Pierre Cardin and Oscar brands in Vietnam, has taken over the entire Pierre Cardin shoe system in Thailand.

Companies - Sun, June 1, 2025 | 10:29 am GMT+7

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Ba Ria-Vung Tau authorities on Friday granted in-principle approvals or investment registration certificates for 53 projects, including a green light for a $400 million investment capital hike of the $5.4 billion Long Son Petrochemicals Complex.

Industries - Sun, June 1, 2025 | 8:00 am GMT+7

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Novaland, a major real estate developer in Vietnam, will simultaneously implement plans to issue bonus shares and offer ESOP (employee stock ownership plan) shares, with a total issuance rate of 5%, equivalent to more than 97 million units.

Companies - Sat, May 31, 2025 | 11:09 pm GMT+7

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Billionaire Pham Nhat Vuong has registered to transfer more than 48 million Vingroup (VIC) shares to the newly-established VinSpeed that registered to build the North-South high-speed railway project.

Companies - Sat, May 31, 2025 | 7:14 pm GMT+7

Two investors propose $65 mln wind power project in central Vietnam

Two investors propose $65 mln wind power project in central Vietnam

A consortium of Quang Tri Renewable Energy Investment JSC and Win Power Holding Pte Ltd, and Nam Binh Wind Power JSC have submitted an application to implement a 48-megawatt wind power plant in the central province of Quang Tri.

Energy - Sat, May 31, 2025 | 3:10 pm GMT+7

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

The central city of Danang is calling for investment in an LNG and LPG terminal project worth over VND5.43 trillion ($208.7 million).

Infrastructure - Sat, May 31, 2025 | 10:52 am GMT+7

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

C.P. Vietnam, a subsidiary of Thailand’s food giant Charoen Pokphand Foods Public Company Limited (CPF), has dismissed social media allegations of selling diseased pork, calling them fabricated and false.

Companies - Sat, May 31, 2025 | 8:54 am GMT+7

Oman Investment Authority to expand investment fund in Vietnam

Oman Investment Authority to expand investment fund in Vietnam

Prime Minister Pham Minh Chinh has proposed Oman to enlarge the Vietnam-Oman Investment Fund (VOI) to $1 billion to better cater for the Southeast Asian country's investment needs.

Economy - Fri, May 30, 2025 | 11:26 pm GMT+7

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Retail giant Aeon will develop a 2-hectare mall in the Mekong Delta province of Tien Giang, with an estimated investment of VND1.16 trillion ($44.6 million).

Industries - Fri, May 30, 2025 | 4:44 pm GMT+7

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

Vietnamese businesses have experienced exponentially higher cost increases than the global average and are expecting additional short-term costs due to trade uncertainty. But many survey respondents (76%) think trade uncertainty has encouraged their business to evolve and explore new opportunities, write HSBC analysts.

Consulting - Fri, May 30, 2025 | 2:41 pm GMT+7

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

After five months of operating a virtual storefront on Alibaba’s B2B e-commerce platform, Sukavina Co., Ltd., a Binh Duong province-based manufacturer of metal tables, chairs, and beds, secured its first international order, marking a significant milestone in the company’s eight-year journey to global markets.

Companies - Fri, May 30, 2025 | 2:37 pm GMT+7

AgriS partners with IFC: Optimizing environmental and social management system, accelerating net zero 2035 goal

AgriS partners with IFC: Optimizing environmental and social management system, accelerating net zero 2035 goal

TTC AgriS (Thanh Thanh Cong-Bien Hoa JSC or AgriS) and International Finance Corporation (IFC) - a member of the World Bank Group - has signed an MoU to strengthen sustainable development governance in alignment with global standards.

Companies - Fri, May 30, 2025 | 2:30 pm GMT+7