Tung Ho Steel Vietnam Corp. Ltd. has lowered its steel bar and coil prices by around 3 percent, or VND500,000 ($21.6) a ton.
Thai Nguyen Iron and Steel Company sold its steel products at VND18.75-19.07 million a ton, down 2-3 percent.
On average, Vietnam steel prices are hovering at around VND18.5-18.7 million a ton, down 3 percent a ton from April but VND1.5-1.7 million higher than the middle of last year.
Insiders attributed the drop to lower input costs, with iron ore prices at China’s Tianjin Port falling 11.5 percent to $139 million a ton.
Vietnam’s steel industry has satisfied domestic demand, producing 11.4 million tons of finished steel products on consumption of 10.6 million tons in the first four months this year, according to data from Vietnam Steel Association.
But prices are still heavily dependent on global material prices as local supply only meets 30 percent of production demand, it added.
Costs of public investment projects will surge 20-30 percent this year, driven by higher construction material prices, VNDirect Securities forecasts.
Steel accounts for 30 percent of construction costs, therefore, lowering its price would lessen the burden on developers and shorten construction time.
US employment data falls short of expectations, aluminium ingot continues destocking trend this week
