According to the Vietnam Steel Association, over 735,000 tons of construction steel were sold in April, the second-lowest monthly sales figures since 2022.
The sale was down 15% against the same period last year.
Over 710,000 tons of construction steel were produced, posting the smallest monthly output since 2022, and a year-on-year drop of 37%.
According to Hoa Phat Group, which holds one-third of the market share for construction steel, demand remained weak worldwide, so it sold only 214,000 tons of construction steel in April, down 28%.
To spur sales, Hoa Phat on May 19 reduced the price of rebar by VND200,000 (US$8.50) to VND15.09 million per ton. Other steel makers lowered the price by VND150,000-250,000.
Since early April, steel prices have decreased six times. At present, the average price of most common products is around VND15 million per ton, similar to that in October 2022 when steel demand started to plummet.
According to Vietcombank Securities Company, steel prices started to fall in late April when prices of input materials such as iron ores, steel scrap and coke went down.
Construction steel prices are likely to drop further in the coming time because of weak demand, the company said, noting that real estate developers and people are discouraged to build houses amid economic difficulties with high lending interest rates.
According to the World Steel Association, the global steel demand is likely to increase by 2.3% to 1.82 billion tons this year, and by 1.7% to more than 1.85 billion tons next year. However, the demand will still be affected by high leading interest rates.