Construction steel prices continue to decline due to slow consumption

According to the Vietnam Steel Association (VSA), the COVID-19 epidemic has been prolonged, so many works, and civil works have been temporarily postponed, especially in the southern region, despite being restarted, but there are still many difficult.

Domestic demand for steel decreased when many provinces and cities across the country implemented prolonged social distancing, leading to a decrease in sales of construction steel.

Accordingly, November sales reached 872,846 tons, down 26% compared to October and down 31.2% over the same period in 2020.

Sales chart of construction steel over the years. (Source: VSA)

The slow consumption of steel has led to a decrease in the domestic price of construction steel from 200-300 VND/kg at the beginning of December 2021, at an average level of about 15,900-16,000 VND/kg depending on the type of product and each business. specific profession.

Price movements of construction steel over the years. (Source: VSA)

However, contrary to the gloomy situation in the country, steel exports continued to increase sharply by more than 1.5 times over the same period last year.

Favorable factors for export such as environmental policy, adjustment of export tax refund by the Chinese Government and recent fluctuations in the price of ore, Coke and scrap have affected the Southeast Asian steel market, including Vietnam.

According to VSA, the market outlook for the fourth quarter is slowing down due to low domestic demand. Considering the long steel consumption market in Vietnam, demand has positive signals for civil works and infrastructure, especially large public investment.

The recent downtrend in prices due to the decline in domestic and imported scrap prices contributed to the reluctance of traders to buy goods at the end of the year.

Vietnambiz