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【Ferro-alloys.com】:Prices of construction steel have dropped by VND200,000 (US$8.50) per ton, the 10th decline in a row, to VND14.5 million, the lowest rate in the last two months.

Companies like Hoa Phat, Viet Y, Viet Duc, and Viet Nhat have cur prices by a cumulative VND1.5 million per ton since early April.

The Vietnam Steel Association attributed the lower prices to weak demand.

However, the price reduction has helped boost production and demand in the last two months. Over 812,000 tons of construction steel were produced in May, up 14% from April, while 927,000 tons of the product were sold, up 26%, the highest growth rate since the beginning of this year, according to the association.

Steel production and sale

Hoa Phat Group, which holds one-third of Vietnam’s construction steel market share, said it sold 530,000 tons of steel of all kinds in May, up 16% against April. Specifically, it sold 284,000 tons of construction steel, up 33%.

Steelmakers said they experienced hardship in the second half of last year, saw improved performance in the first quarter of this year, and would make profits in the second quarter.

However, VNDirect Securities Corporation said steel demand would remain weak throughout 2023.

Total sales of construction steel and galvanized steel are likely to decrease by 9.2% and 7% this year to 9.5 million tons and 3.9 million tons, respectively, it predicted.

• [Editor:Alakay]