Construction steel prices increase

On October 8, in the Northern market, Hoa Phat steel brand, CB240 steel coil line is priced at 13,580 VND/kg; D10 CB300 ribbed steel bar is priced at 13,790 VND/kg.

Viet Y steel brand, CB240 steel coil line is priced at 13,530 VND/kg; D10 CB300 ribbed steel bar is priced at 13,640 VND/kg.

Viet Duc steel, CB240 steel coil line is priced at 13,530 VND/kg, D10 CB300 ribbed steel bar is priced at 13,890 VND/kg.

Viet Sing steel, CB240 steel coil line is priced at 13,500 VND/kg; D10 CB300 ribbed steel bar is priced at 13,700 VND/kg.

VAS steel, CB240 steel coil line is priced at 13,500 VND/kg; D10 CB300 rebar is priced at VND13,600/kg.

Last weekend, Hoa Phat adjusted the selling price of construction steel for the second time in October. Specifically, CB240 coil steel and D10 CB300 rebar both increased by VND100,000 to VND13.58 and VND13.79 million per ton, respectively. Rebar steel alone has increased its price for the third consecutive time since mid-September with a margin of VND460,000 per ton.

Other brands such as Viet Y, Viet Duc, Viet Sing, Kyoei Vietnam, VJS... have also changed their prices since the beginning of the month. Depending on the type, it will increase by VND100,000-170,000 after each adjustment, with some types increasing twice in a row just last week.

Accordingly, after recent price increases, construction steel is being sold for around VND13.5-14 million per ton. This price level is returning to the same level as in late July and early August, before a sharp decline occurred throughout the following period.

Data from FinSuccess shows that brands with a large market share in the steel manufacturing industry have all recorded a recovery in consumption. Hoa Phat's steel sales in the first 8 months reached more than 1.05 million tons, up over 40% over the same period last year. Of which, the domestic channel increased by nearly 22.5% and exports increased by nearly 54%.

Nam Kim Steel (NKG) had a consumption volume of more than 621,400 tons, up over 26%. Meanwhile, Ton Dong A (GDA) reached more than 588,300 tons, up over 16%.

In general, the Vietnam Steel Association (VSA) reported that construction steel production in the first 8 months of this year reached 7.8 million tons, up 14% over the same period. Sales reached 7.77 million tons, up 15%. Of which, exports recorded a 20.5% increase over the same period, reaching more than 1.1 million tons.

VSA assessed that domestic output has recovered, but domestic steel demand remains low, not as expected during the construction season. In addition, competition to protect market share among factories, including imported goods, has made the market more difficult.

Regarding the steel market in the last quarter of the year, MB Securities (MBS) forecasts that domestic steel prices may recover due to reduced pressure from China and improved demand. Specifically, the recovery of Chinese steel prices narrows the gap and reduces the price advantage of imported steel from this country. In terms of demand, improved housing supply and increased public investment disbursement have become growth drivers for domestic steel prices.

Accordingly, in the fourth quarter of 2024, MBS expects domestic construction steel prices to recover by 5% compared to the bottom in August. According to their estimates, construction steel prices may average 571 USD per ton (nearly 14.2 million VND). Construction steel could rise 7% in 2025, also thanks to demand growth and easing pressure from China.

Heat from China's market recovery

In China, rebar on the Shanghai Futures Exchange (SHFE) for May 2025 delivery is currently at 3,618 yuan/t.

Iron ore futures on the Singapore Metal Exchange rose 2% to $110.80/t. Among base metals, aluminum, copper and zinc were largely unchanged on the London Metal Exchange, while nickel rose 0.9%.

Iron ore added to two big gains this week, on speculation that China's top economic planner will announce more stimulus measures. Other industrial metals were largely steady.

The steelmaking staple rose as much as 2.6% on the Singapore Exchange, after surging 18% in the previous two weeks. An upcoming press conference will be attended by five senior officials from China's National Development and Reform Commission, the government said on Sunday, and there are expectations that the meeting could include announcements on increased public spending.

The Chinese government has rolled out a series of support measures, including interest rate cuts and targeted support for the property sector, late last month, which have sent global metals prices soaring.

Chinese industry representatives said they believe the policy package represents a significant shift by the authorities to focus more on reviving economic growth.

Banking and financial services giant ANZ Group Holdings Ltd also said in a recent report that "there is room for further upside as China's markets reopen. Any sustained recovery may depend on more specifics on the promised fiscal stimulus."

CafeF