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Thursday, June 13, 2024

Year-end construction surge drives up steel prices

The Saigon Times

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HCMC – Steel prices are rising as the construction sector has entered its year-end peak, driven by major infrastructure projects.

Steel producer Hoa Phat Group has hiked its construction steel products by VND200,000 per ton. Other industry players, including Vietnam-Italy Steel, Viet Duc Steel, Kyoei Steel, and Pomina, have followed suit with price increases ranging from VND150,000 to VND340,000 per ton.

This marks the fourth price uptick within a month, with cumulative rises reaching VND300,000 to VND500,000 per ton.

Despite the recent hikes, the current prices remain within the range observed in July and close to August 2022, maintaining relatively low levels over the past three years.

The increase in steel prices is attributed to the year-end construction season, compensating for a slowdown in residential real estate projects. The habitual construction and renovation activities among individuals, along with the accelerated pace of public infrastructure projects, has contributed to the buoyant construction sector.

Hoa Phat Group has ascribed the market upswing to the construction season and initiatives promoting public investment disbursement. In November, sales of various steel products, including hot-rolled coil (HRC), construction steel, high-quality steel, and steel billets, amounted to 709,000 tons, up by 12% versus October. Construction steel and high-quality steel saw a notable 21% increase, amounting to 410,000 tons.

Vietnam Steel Corporation reported robust sales growth, achieving a volume of over 324,300 tons in November, surging by 53% month-on-month and 36% year-on-year. Construction steel contributed over 235,600 tons, a respective increase of 62% and 19%.

Data from the Vietnam Steel Association (VSA) further reinforces the upward trend, showing over 2.5 million tons of steel sold in November, a 13% and 30% increase compared to the previous month and November of 2022.

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