AsemconnectVietnam - Vietnam steel prices in May 2024 increased due to market fluctuations and increased production costs. At the same time, the price of imported raw materials for steel production such as coal, iron ore, scrap steel, hot rolled coil... shows no signs of stopping the increase. Businesses must adjust selling prices to match input costs.

Construction steel prices in 3 regions:
According to Kinhtedothi, as of May 20, 2024, in the North, the price of CB240 Hoa Phat steel coil reached 14,240 VND/kg, an increase of 200 VND/kg compared to the previous month; CB240 steel coil price reached 14,140 VND/kg, an increase of 100 VND/kg compared to the previous month.In the Central region, the price of CB240 Hoa Phat steel coil reached 14,240 VND/kg, an increase of 200 VND/kg compared to the previous month; Viet Duc CB240 steel coil price reached 14,640 VND/kg, an increase of 200 VND/kg compared to the previous month.In the South, the price of CB240 Hoa Phat steel coil reached 14,240 VND/kg, an increase of 200 VND/kg compared to the previous month; CB240 Pomina steel coil price reached 14,690 VND/kg, an increase of 100 VND/kg compared to the previous month.
Finished steel product output up by 43%
Finished steel product output in April 2024 of the Vietnam Steel Association increased by 43% compared to March 2024 and increased by 74% over the same period to more than 348,000 tonnes of all types. Construction steel output increased 61% over the previous month and 65% over the same period to more than 233,000 tonnes; cold rolled steel up by 90% compared to last month, up 42% over the same period in 2023 to 63,700 tonnes; Galvanized steel output grew impressively, especially the export volume is quite good, up 82% over the previous month and up 253% over the same period last year to 51,800 tonnes.
Vietnam’s steel products imports & exports increase
In April, Vietnam’s steel products exports reached about 1.11 million tons, increasing by 0.9% from the previous month and by 14.4% year on year. The imports totaled about 1.28 million tons, a month-on-month decrease of 10.7% but a year-on-year increase of 24.3%. Meanwhile, the country’s scrap imports were about 408,000 tons, decreasing by 11.6% month on month.
In the first four months of this year, the exports of steel products from Vietnam hiked by 33.7% year on year to 4.34 million tons. The imports amounted to 5.37 million tons, a year-on-year increase of 42.5%. During the same period, the scrap imports were 1.69 million tons, decreasing by 8% year on year.
Ha Tinh Steel raises prices for July delivery, following price hike of Hoa Phat
Vietnam's Formosa Ha Tinh Steel announced domestic hot-rolled coil prices for July delivery on May 10, indicating a US$20 increase, according to sources. Despite uncertain domestic steel demand in Vietnam, the government's stance is still on conducting anti-dumping investigations on imported materials from certain countries.
This measure aims to prevent the entry of cheap steel into the country, potentially prompting Ha Tinh Steel to raise prices. Additionally, with the Hoa Phat steel plant in Vietnam announcing sold-out hot-rolled coils despite the recent price hike, this may further drive up prices for Ha Tinh Steel.
Hoa Phat plans to expand its business on high-speed rail track development
Hoa Phat Group, Vietnam's largest steel manufacturer, revealed plans to potentially manufacture tracks for high-speed railways capable of reaching speeds of 850 kilometers per hour.
Professor Dr. Bui Xuan Phong, former chairman of the Vietnam Economics and Railway Transport Association, voiced support for such initiatives but highlighted the current absence of concrete progress in the North-South express railway project. Phong also indicated that the endeavor could pose significant challenges due to the technical complexities associated with high-speed railways.
Acknowledging the difficulty of the task, Hoa Phat Group chairman Tran Dinh Long affirmed the company's determination to pursue the venture, emphasizing its alignment with the group's core business.
Positive outlook for Vietnam's steel industry in 2024
The steel industry in Vietnam is expected to have a positive outlook for 2024, with major companies like Hoa Phat and Hoa Sen projected to experience significant recoveries, while small businesses may face challenges in finding output due to the recovery of steel prices and demand from large contractors.
According to Tien Phong Securities (TPS), the outlook for the steel industry to the end of 2024 is largely positive. The domestic economy is showing signs of improvement, with construction projects resuming, feeding into a more vibrant steel consumption market after the Lunar New Year holiday.
Steel enterprises have seen smooth progress in the first quarter of this year. However, the consumption of construction steel in Vietnam experienced a 20% decline compared to the fourth quarter of the previous year, mainly due to weak demand from the real estate market.
T.Huong
Source: Vitic