The above figures have just been announced by the Vietnam Steel Association (VSA). This figure increased by 9% compared to August and increased by 4% compared to the same period last year. This is the first time that construction steel sales have grown positively this year and reached the highest level in the past 9 months.

Improved market demand is also reflected in the business situation of companies. Leading enterprise Hoa Phat recorded the highest sales volume since the beginning of the year. Specifically, sales of construction steel products, hot rolled coil (HRC), and steel billets reached 596,000 tons, up 7% compared to the previous month. Construction steel alone contributed 352,000 tons, the highest since the beginning of the year and up 15% compared to August.

Similarly, the entire Vietnam Steel Corporation (Vnsteel) system also achieved the highest sales volume since the beginning of the year in September. Over 268,000 tons of steel from this system were consumed, an increase of 8% compared to the previous month and an increase of 9% compared to the same period.

According to VSA, construction steel sales increased, partly thanks to transportation projects such as the North-South Expressway, new airport projects being implemented, accelerating progress, and a number of other projects.

Retailers also believe that the stagnant steel price is also a factor supporting consumption demand. After 18 consecutive decreases since April, steel prices have been stable for more than a month since the beginning of September. CB240 steel is listed by Hoa Phat in the Northern market at 13.43 million VND per ton. D10 CB300 steel is 13.74 million VND per ton. This is the lowest price since 2020.

However, VSA assessed that market demand for steel products in general is still weak and has not improved much. In the first 9 months, construction steel sales reached more than 7.7 million tons, down 20% compared to the same period in 2022. Of which, exports decreased by nearly 13%.

In a recent report, KB Securities Vietnam (KBSC) forecasted that steel prices may continue to remain at a low base level until the end of the year. However, selling prices are unlikely to fall further as steel inventories in China and Vietnamese enterprises have approached their lowest levels since the end of 2020.

Although there has not been a significant improvement compared to the same period last year, the domestic steel market is gradually showing more positive signs. KBSC expects that domestic steel consumption demand may begin to remain positive from the beginning of 2024 thanks to: relatively low interest rates supporting production and business activities; low base steel prices stimulating consumption demand; policies to remove difficulties for the real estate and civil construction markets; and potential from the export market.

Siddhartha