From November 16 to now, steel enterprises have two rounds of price adjustment, the total reduction is up to 700,000 VND/ton. The reason is that the price of steel billet and input materials have cooled down.
Some domestic steel enterprises have just sent notices to customers about the reduction of steel prices from December 6, according to Dan Tri.
Specifically, rebar and coil of all kinds were adjusted down by 400,000 VND/ton. The reduction in steel prices is based on the price of steel billets and input materials cooling down.
After the price reduction, the domestic steel price is still high. A construction business said that the unit price for Hoa Phat steel that they are paying still fluctuates at VND 16,660 – VND 16,760/kg (excluding VAT) depending on the type.
Previously, in the latest price adjustment (November 16), domestic steel enterprises also reduced the price of rebar and coil of all kinds by 300,000 VND/ton.
Less than a month, steel enterprises had two price adjustments. (Photo: Hoa Phat)
According to the Vietnam Steel Association, in October, finished steel production reached 2.8 million, up 19% over the previous month and 14% over the same period last year.
Sales of all kinds of steel reached 2.6 million tons, up 20.5% over the previous month and 36% over the same period, respectively.
The sharp increase in steel and material prices in 2021 has pushed construction prices to new ground.
Mr. Nguyen Quoc Hiep, Chairman of the Contractors Association said that the construction industry currently has more than 2,000 contractors.
“Contractors have to face price storms, steel prices sometimes increase by 40%. Many other types of raw materials have both increased in price and are scarce. In the context of material price storms, construction contractors have difficulty finding jobs, I just didn’t dare to accept the job,” said Mr. Hiep.
The movements of the materials market are putting great pressure on the construction industry.
Mr. Nguyen Huu Thap, Chairman of the Association of Small and Medium Enterprises in Tuyen Quang province, said that before, in contracts, only a 5% increase in price was calculated. Because when bidding, if the price of steel still increases by 5%, it will still be profitable.
But recently, the price of steel increased by 50%, an unprecedented increase in history. Many businesses were unable to continue construction because they continued to make losses, so they had to let the project “put a mat”.
In market reports, experts believe that if the COVID-19 epidemic is under control, public investment projects and real estate will become more active, leading to strong selling prices of construction materials such as cement and iron. steel will continue to anchor high.
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