As noted in the past few days, many businesses have announced to contractors about reducing steel prices. Compared to the end of May and the beginning of June 2021, the construction steel price has decreased by about 750,000 VND – 1.5 million VND/ton (depending on brand and product) to June 22nd, 2021. From the beginning of June until now, construction steel has had two price reductions, before that was June 9, 2021.
Currently, the price of CB240 steel coil of Hoa Phat Group in all three regions of the North, Central and South is from VND 16.6 million to VND 16.7 million/ton, D10 rebar between VND 16.8 million and 16.9 million VND/ton.
Vietnam – Italy Steel in the North fell to the same price as Hoa Phat Steel, with CB240 coil price at about 16.7 million VND/ton; and D10 CB300 steel at 16.8 million VND/ton. In addition, Kyoei steel in the North with CB240 coil line is relatively stable at 16.6 million VND/ton; D10 CB300 rebar is priced at 17 million VND/ton.
Along with that, two products of Thai Nguyen steel company also witnessed a slight decrease with CB240 priced at 16,340 VND/kg and D10 CB300 steel at 17,000 VND/kg. American Steel brand in the North with CB240 coils at over 16 million VND/ton; D10 CB300 rebar is currently priced at 17.1 million VND/ton.
The reason for the decrease in steel prices after a series of consecutive increases is attributed to the decrease in construction demand. Because June and July every year is the rainy season, the less construction works, leading the quantity of steel sold will be less and the price is also often adjusted down. However, in the last months of the year, which is the peak period of the construction season, steel prices may increase again.
According to many experts, the recent sharp increase in steel prices has negatively impacted many aspects, specifically and most directly, construction activities, affecting the progress of works, disbursement of public investment capital, pushing up housing prices, etc. At the macro level, rising steel and construction materials prices make it difficult to control inflation and stabilize the market.
Therefore, in the past, relevant ministries and sectors have proposed several solutions to curb the increase in steel prices such as increasing domestic steel production output, strictly controlling the market, and prioritizing domestic distribution rather than export and avoiding speculative hoarding. The Ministry of Industry and Trade also established working groups to work directly with steel enterprises to capture information on production situation, supply and demand situation for input materials as well as finished steel products to have timely measures to stabilize prices.