Steel prices have been steadily on the decline in the last few weeks as prices for raw materials dropped on the global market, according to the Vietnam Steel Association (VSA).

VSA reported prices for iron ore have gone down to US$139 per tonne, a $16 decrease from prices at the beginning of April, and a $71-73 decrease from the record-breaking prices reported in May 2021 at $210-212 per tonne. Meanwhile, prices for steel scrap have also seen a significant drop to $530 per tonne, a $94 decrease from early April. Hot-rolled coil has fallen to $797 per tonne, an $81 decrease.

Since the beginning of the year, demand for steel in the domestic market has been high as economic recovery was in full swing. Steelmakers, taking full advantage of robust demand, also raised their prices on the pretext of higher input costs of imported raw materials.

However, a sharp fall in demand in China due to extensive social distancing measures employed by Chinese authorities in recent months has forced Vietnamese steelmakers to lower prices to clear their inventory, bringing steel down to an average of VND18.25-18.50 million per tonne.

Hoa Phat steel has gone down by VND4.6-8.0 million per tonne, Viet Duc steel by VND5.1-7.6 million, Thai Nguyen steel by as much as VND8.1 million per tonne.