Domestic steel prices continue to decrease

Some domestic steel enterprises have just announced to customers about the reduction of steel prices, starting from December 6.

Accordingly, rebar and coil of all kinds are adjusted down by 400,000 VND/ton. The reason said by the business is the decrease in the price of steel billets and input materials.

After the price reduction, the domestic steel price is still high. A construction enterprise said that the unit price for Hoa Phat steel that they are paying still fluctuates at VND 16,660 - VND 16,760/kg (excluding VAT) depending on the type.

Most recently (November 16), in the face of a decrease in input materials, domestic steel enterprises have also reduced the price of rebar and coil of all kinds by 300,000 VND per ton.

According to a report by the Vietnam Steel Association, in October this year, finished steel production reached 2.87 million, up 19.36% over the previous month and up 14% over the same period last year. Sales of all kinds of steel reached 2.67 million tons, up 20.55% over the previous month and 36.4% over the same period, respectively.

2021 can be considered a memorable year with a record increase in steel prices. As a result of rising prices of steel as well as other construction materials, prices of construction works have been pushed up to new ground.

According to Mr. Nguyen Quoc Hiep - Chairman of the Association of Contractors - the construction industry currently has more than 2,000 contractors. "Contractors have to face price storms, steel prices sometimes increase by 40%. Many other raw materials are both increasing in price and scarce," said Mr. Hiep.

"Having cried and laughed" because of the price of raw materials, Mr. Hiep said that the construction contractor was in a situation where it was difficult to find a job and did not dare to accept the job.

Mr. Nguyen Huu Thap, Chairman of the Association of Small and Medium Enterprises in Tuyen Quang province, also said that the price of construction materials is putting great pressure on the construction industry. Previously, the contracts were only calculated at a price increase of around 5%. Because when bidding, if the price of steel still increases by 5%, it will still be profitable. But recently, Mr. Thap said, unprecedented in history, steel prices increased by 50%.

In market reports, experts say that if Covid-19 is under control, economic activities will be more vibrant, public investment projects are strongly implemented, "real estate projects" on The whole country is also more active, creating a strong consumption momentum of construction materials such as cement, iron and steel, causing the prices of these items to continue to stay high.

Meanwhile, the sharp increase in steel prices has caused a lot of difficulties for contractors and investors. Many businesses were unable to continue construction because they continued to make losses, so they had to let the project "put a mat".

Dan Tri