Domestic steel prices fall for the 10th time

Domestic construction steel prices have just continued to be adjusted down by VND200,000/ton, extending the streak of 10 consecutive decreases since April.

Presently steel price The average construction price fluctuates from 14 - 14.5 million VND/ton, this is the lowest area in the past 2 months. Along with a series of policies to remove difficulties for The real estate market and the cooling price of important materials such as steel are also opening up many expectations for construction businesses in the second half of this year.

Besides the reason of falling raw material prices on the world market, the decrease in consumption demand in the first months of the year also forced manufacturers to lower prices to compete.

Since the beginning of April, steel prices have dropped by VND1.5 million/ton. This is a positive sign for construction companies, as steel costs usually account for about 15-17% of construction costs.

Giá thép trong nước giảm lần thứ 10 - Ảnh 1. — Domestic steel prices continue to fall. (Illustration photo - Photo: VNA)

According to Mr. Nguyen Quoc Hiep - Chairman of the Vietnam Association of Construction Contractors, a 15% decrease in steel prices cannot immediately reduce construction bids because this fluctuation is still within the scope of contracts signed with investors.

As a result, construction contractors can reduce some input costs and improve profit margins. In addition, construction demand is also showing signs of warming up in the second half of this year thanks to support from policies.

According to a report from the Vietnam Steel Association, in May, the country produced more than 812,000 tons of construction steel, up 14% compared to the previous month. Meanwhile, consumption increased by 26% - the best level since the beginning of the year.

This is the second consecutive month that steel consumption is greater than production. The gap between steel consumption and production increased nearly five times compared to the previous month, reaching more than 115,000 tons. This shows that market demand is also gradually increasing.

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