Vietnam steel prices drop 12th time in three months

By Trang Nguyen
Tue, August 9, 2022 | 1:07 pm GTM+7

Retail steel prices in Vietnam have fallen by about VND4 million ($171) per ton since May 11 in 12 consecutive drops.

Current prices are hovering around VND15-16 million ($684) per ton depending on steel type and brand.

Hoa Phat Group's D10 CB300 rebar. Photo courtesy of the group.

Hoa Phat Group's D10 CB300 rebar. Photo courtesy of the group.

The Vietnam-Japan Steel Corporation Ltd. has seen the strongest decrease in this adjustment period. The selling price of its CB240 coil and D10 CB300 rebar in the northern region has reduced by VND650,000 and VND400,000 ($17) to VND14.95 million and VND15.66 million ($669) per ton, respectively.

The Hoa Phat Group has reduced its CB240 coil and CB300 D10 rebar prices in the north by VND200,000 ($8.55) to VND15.18 million and VND16.04 million ($686) per ton, respectively.

The group has also cut the prices of the two kinds of steel in the south by VND200,000 per ton to VND15.28 million and VND15.94 million, respectively.

Others steelmakers like Vietnam-Italy Steel, Vietnam Germany Steel Pipe, Kyoei Steel Vietnam, Vietnam Steel Corporation, Pomina Flat Steel, Viet Sing Steel Investment, and Tung Ho Steel Vietnam have applied similar reductions in the last three months.

The decline of the last three months followed a continuous rise in prices from March to early May.

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 such as iron ore, scrap steel, coke at the end of the second quarter were down 40-50% compared to the previous quarter.

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

Sales of finished steel in Q2/2022 reached 7 million tons, down 3.7% year-on-year, according to the Vietnam Steel Association (VSA).

In H1, sales of finished steel products topped 15.1 million tons, up only 0.6% over the same period last year - when the Covid-19 pandemic was at its peak.

Revenues and profits of steelmakers plummeted in Q2 because of this sharp drop in prices.

The Hoa Phat Group reported a Q2 after-tax profit of over VND4,000 billion ($171 million), down nearly 60% year-on-year, while corresponding figures for Nam Kim Steel were VND200 billion ($8.55 million) and 76%.

Other companies like SMC Steel Mechanical Company, VNSteel Thu Duc, Cao Bang Cast Iron & Steel, and Me Lin Steel have also announced dismal business results, even losses.

Global steel demand is forecast to grow very slowly in 2022 and 2023 at 0.4% and 2.2% year-on-year, respectively, Vietcombank Securities (VCBS) has cited a World Steel Association report as saying.

Another broker VnDirect, has noted that the steel industry has alternating periods of rising and falling prices as it is a cyclical industry. It estimates domestic steel prices this year and 2023 at VND16.1 million and VND14.5 million ($620) per ton, respectively, down 5-15% compared to current market prices.

Comments (0)
  • Read More
Heineken opens Southeast Asia’s biggest brewery in southern Vietnam

Heineken opens Southeast Asia’s biggest brewery in southern Vietnam

Heineken Vietnam inaugurated an expanded brewery in Ba Ria-Vung Tau province Saturday, saying it was the the biggest in Southeast Asia and used 100% renewable energy.

Industries - Sun, September 25, 2022 | 8:12 pm GTM+7

Agriculture major Hoang Anh Gia Lai suspends $72 mln share issuance

Agriculture major Hoang Anh Gia Lai suspends $72 mln share issuance

Hoang Anh Gia Lai JSC (HAGL) has suspended registration documents for a private placement of shares worth VND1,700 billion ($71.7 million) that it had submitted to the State Securities Commission.

Companies - Sun, September 25, 2022 | 5:42 pm GTM+7

Three Vietnamese carriers among world's top 100 airlines

Three Vietnamese carriers among world's top 100 airlines

Vietnam Airlines, Bamboo Airways and Vietjet Air have been honored with titles in different categories by UK-based air transport rating organization Skytrax.

Travel - Sun, September 25, 2022 | 3:53 pm GTM+7

Northern, central provinces prepare for supertyphoon Noru arrival

Northern, central provinces prepare for supertyphoon Noru arrival

Northern and central provinces have been told to prepare for supertyphoon Noru, which is heading in a northwest direction with wind speeds of up to 183 km per hour.

Society - Sun, September 25, 2022 | 3:35 pm GTM+7

Expensive HCMC apartments in large supply

Expensive HCMC apartments in large supply

More and more luxury and high-end apartment projects have appeared in Ho Chi Minh City, Vietnam’s southern economic hub, with prices exceeding VND200 million ($8,400) per square meter in some cases.

Real Estate - Sun, September 25, 2022 | 10:12 am GTM+7

HCMC anti-smuggling cop in the dock for smuggling

HCMC anti-smuggling cop in the dock for smuggling

Hoang Duy Tien faces prosecution for overseeing the smuggling of goods worth VND211 billion ($8.9 million) when he was an officer with the HCMC economic police division.

Society - Sun, September 25, 2022 | 8:34 am GTM+7

Long Thanh Airport police station opens on construction site

Long Thanh Airport police station opens on construction site

A police station has been set up at the Long Thanh International Airport construction site in Dong Nai province to ensure security and traffic safety.

Society - Sun, September 25, 2022 | 8:18 am GTM+7

Work begins on HCMC Ring Road 3 section

Work begins on HCMC Ring Road 3 section

Construction began Saturday on an 8.7-kilometer section of Ho Chi Minh City's Ring Road 3 that is set for completion in three years.

Infrastructure - Sat, September 24, 2022 | 9:07 pm GTM+7

VN-Index loses 31 points in week of US interest rate hike

VN-Index loses 31 points in week of US interest rate hike

Vietnam’s benchmark VN-Index decreased to the area close to 1,200 points at the end of this week, down 31 points following the U.S. Federal Reserve’s mid-week interest rate hike of 75 percentage points.

Finance - Sat, September 24, 2022 | 5:02 pm GTM+7

Four Phu Quoc Island hotels win best titles in Asia

Four Phu Quoc Island hotels win best titles in Asia

Four hotels on Phu Quoc Island, namely Novotel, Pullman, New World and JW Marriott, were honored Thursday at Haute Grandeur Global Hotel Awards with titles in different categories.

Travel - Sat, September 24, 2022 | 4:18 pm GTM+7

European training for Vietnam football talents

European training for Vietnam football talents

Phat Dat Real Estate Development Corporation has become a key sponsor of a strategic cooperation in developing young football talents in Vietnam.

Companies - Sat, September 24, 2022 | 3:44 pm GTM+7

Deposit rates surge after central bank raises rate ceiling

Deposit rates surge after central bank raises rate ceiling

A slew of small- and medium-size commercial banks have hiked their deposit interest rates by 0.3-1 percentage points after the State Bank of Vietnam raised the deposit rate ceiling Friday.

Banking - Sat, September 24, 2022 | 3:10 pm GTM+7

Remove bottlenecks, facilitate FDI flows among Mekong Subregion: experts

Remove bottlenecks, facilitate FDI flows among Mekong Subregion: experts

Greater awareness of the opportunities and required policy support are key to expanding the scale, quality and speed of foreign investment in the Mekong Subregion, experts say.

Economy - Sat, September 24, 2022 | 1:24 pm GTM+7

Vingroup gets green light for second battery factory

Vingroup gets green light for second battery factory

The nation’s largest private conglomerate, Vingroup, has received in-principle approval to build its second auto battery plant in the same economic zone as the first in central Vietnam.

Industries - Sat, September 24, 2022 | 11:59 am GTM+7

Q4 shopping demand to electrify goods storage space

Q4 shopping demand to electrify goods storage space

Stiffer competition among online shopping sites in Vietnam during the last three months of the year will drive up inner-city warehouse occupancy rates, according to Cushman & Wakefield.

Real Estate - Sat, September 24, 2022 | 10:46 am GTM+7

EVN responsible for price talks with renewables projects missing FiT deadline: regulators

EVN responsible for price talks with renewables projects missing FiT deadline: regulators

Vietnam Electricity (EVN) is responsible for negotiating prices and outputs with wind and solar power developers that have failed to meet the country’s feed-in-tariff deadline, says the Electricity Regulatory Authority.

Energy - Sat, September 24, 2022 | 9:05 am GTM+7