The price of construction steel is on the rise despite the fact that the demand for this type of construction material remains weak, insiders have said.

The selling price of steel in Ha Noi is VND18 million (US$761) per tonne, which is approaching its peak recorded in mid-2022.

Nguyen Van Sua, a steel industry expert, said that this year the steel price may not reach its peak as in 2022, but it is on the rise because the actual demand is not high.

Production and sale of the steel industry depend heavily on the implementation of real estate, bridge and road projects. However, these projects are at standstill, he said.

Hoang Cuong, an iron and steel dealer on Tam Trinh Street, Ha Noi’s Hoang Mai District, said since the beginning of this year, steel prices have increased seven times, with a total increase of about VND1.2 million per tonne.

According to him, the price of billet and raw materials has increased, so manufacturers adjusted the selling price of finished steel.

A representative of a steel firm said that the demand for real estate is low while the cost of input materials remains high, thus, the selling price is raised to reduce losses.

According to the Vietnam Steel Association (VSA), the selling price of finished steel has increased slower than the growth rate of input materials, affecting the performance of steelmakers.

Hoa Phat Group said that in the first two months of 2023, the sale of steel products in the domestic and foreign markets both decreased over the same period.

Specifically, the group sold 282,000 tonnes of construction steel in February, down 37 per cent year-on-year. It supplied the market with 186,000 tonnes of hot rolled coil (HRC) steel in the month, more than two times higher than the previous month but declined by 20 per cent year-on-year. — VNS