Synopsis:Steel prices in Vietnam have hit a three-year low, dropping to approximately VND13.5 million ($562) per ton due to dwindling demand. Major players like Hoa Phat Group have reduced their rolled steel prices by 2.17%, marking the 18th price decline this year. Despite the usual high construction activity in August, sellers are experiencing sluggish sales, reflecting a 60% year-on-year drop. The industry's production has also been curtailed, with Hoa Phat's output down by 30%. Experts predict a continued price decline in the following months, influenced by subdued demand from China, reports Vietnam PostArticle: The landscape of steel in Vietnam has taken a dramatic turn as prices plunge to a three-year low, painting a stark picture for the industry. With the price of steel hovering around VND13.5 million per ton, an unsettling combination of factors has converged to drive the market's downward trajectory.The heart of the issue lies in dwindling demand, a factor that has played a pivotal role in pushing steel prices to their current lows. As Hoa Phat Group, a key player in the market, makes a 2.17% reduction in rolled steel prices, the industry confronts the reality of the 18th price decline this year alone.While August typically ushers in a peak season for construction activity, this year, the script has taken an unexpected twist. Sellers in the steel market have encountered sluggish sales, with reports indicating a staggering 60% year-on-year drop in sales since early July. This downturn has left many industry players grappling with the need to adapt their strategies in response to the subdued demand.The dampened demand ripple effect has further manifested in production levels. Hoa Phat Group, one of the industry's major contributors, witnessed a substantial 30% year-on-year drop in steel production during the first seven months. Sales of steel also dipped by 23%, underscoring the challenges the sector is facing in maintaining a steady momentum.The situation is not isolated to the domestic market. In the first seven months of the year, Vietnam's steel imports plummeted by 31% compared to the same period the previous year. The impact of this decline resonates beyond borders, influencing the overall market dynamics.Experts from the Vietnam Steel Association predict that the trajectory of declining prices is set to persist, casting a shadow over the coming months. Vietcombank Securities adds to this outlook, emphasizing that recovery is unlikely within the year. The subdued demand from China, a major consumer of steel, stands as a significant factor in this prolonged slump.Conclusion: The recent plunge in steel prices and the broader challenges facing the industry paint a portrait of resilience and adaptation. The industry's journey forward hinges on navigating the complex interplay between demand, production, and market dynamics. As the months unfold, the steel sector will continue to find ways to regain equilibrium and steer the course toward a more prosperous future.
Synopsis:Steel prices in Vietnam have hit a three-year low, dropping to approximately VND13.5 million ($562) per ton due to dwindling demand. Major players like Hoa Phat Group have reduced their rolled steel prices by 2.17%, marking the 18th price decline this year. Despite the usual high construction activity in August, sellers are experiencing sluggish sales, reflecting a 60% year-on-year drop. The industry's production has also been curtailed, with Hoa Phat's output down by 30%. Experts predict a continued price decline in the following months, influenced by subdued demand from China, reports Vietnam PostArticle: The landscape of steel in Vietnam has taken a dramatic turn as prices plunge to a three-year low, painting a stark picture for the industry. With the price of steel hovering around VND13.5 million per ton, an unsettling combination of factors has converged to drive the market's downward trajectory.The heart of the issue lies in dwindling demand, a factor that has played a pivotal role in pushing steel prices to their current lows. As Hoa Phat Group, a key player in the market, makes a 2.17% reduction in rolled steel prices, the industry confronts the reality of the 18th price decline this year alone.While August typically ushers in a peak season for construction activity, this year, the script has taken an unexpected twist. Sellers in the steel market have encountered sluggish sales, with reports indicating a staggering 60% year-on-year drop in sales since early July. This downturn has left many industry players grappling with the need to adapt their strategies in response to the subdued demand.The dampened demand ripple effect has further manifested in production levels. Hoa Phat Group, one of the industry's major contributors, witnessed a substantial 30% year-on-year drop in steel production during the first seven months. Sales of steel also dipped by 23%, underscoring the challenges the sector is facing in maintaining a steady momentum.The situation is not isolated to the domestic market. In the first seven months of the year, Vietnam's steel imports plummeted by 31% compared to the same period the previous year. The impact of this decline resonates beyond borders, influencing the overall market dynamics.Experts from the Vietnam Steel Association predict that the trajectory of declining prices is set to persist, casting a shadow over the coming months. Vietcombank Securities adds to this outlook, emphasizing that recovery is unlikely within the year. The subdued demand from China, a major consumer of steel, stands as a significant factor in this prolonged slump.Conclusion: The recent plunge in steel prices and the broader challenges facing the industry paint a portrait of resilience and adaptation. The industry's journey forward hinges on navigating the complex interplay between demand, production, and market dynamics. As the months unfold, the steel sector will continue to find ways to regain equilibrium and steer the course toward a more prosperous future.
