The price of steel has plunged to the lowest in three years to around VND13.5 million ($562.09) per ton amid declining demand.
Hoa Phat Group, which accounts for 30% of the domestic market, has lowered its rolled steel prices by 2.17% from a week ago to around VND13.53 million per ton.
Other companies such as VAS, Tungho and Thep My sold their steel at the same price. This is the 18th decline in steel prices this year.
Although August is considered a high time for construction work, sellers have been posting low sales.
Hung Vu, a steel seller in Hanoi’s Ha Dong District, said that since early July sales have plunged 60% year-on-year. Most manufacturers have cut production.
Hoa Phat in the first seven months produced nearly 3.5 million tons of steel, down 30% year-on-year. Its sales also dropped 23% to 3.46 million tons.
In the first seven months, Vietnam imported 31% less steel than last year, according to the Ministry of Industry and Trade.
The Vietnam Steel Association expects the price drop to persist in the coming months.
Vietcombank Securities said in a note that prices would not recover this year as demand from China remained low.