Although the demand for building steel rose by more than 26 per cent in May compared to the previous month, steel prices decreased for the tenth month, and steelmakers expect the struggle to continue.

A monthly report from Việt Nam Steel Association (VSA) showed that construction steel output increased by 14.18 per cent over the previous month to 812,085 tonnes, but decreased by 27.3 per cent year-on-year.

Sales of the products in May increased by 26.08 per cent month-on-month to 927,618 tonnes but were unchanged compared to the same period last year.

Raw material prices tended to increase slightly at the end of May, with the rally extending to June. However, due to weak demand, steel producers had to gradually reduce their prices and implement subsidies.

In the domestic market, as of June 15, some steel manufacturers have lowered their prices by VNĐ100,000 to VNĐ270,000 per tonne for CB240 steel coils, down to about VNĐ13.94 million to VNĐ14.82 million per tonne. They kept the same price for the CB300 rebar as compared to the latest adjustment.

Data compiled by steelonline.vn showed that, during the period, Hoà Phát Group (HPG), the country's largest steel producer, quoted its CB240 steel coils in the northern market at VNĐ13.94-14.82 million per tonne, a decrease of VNĐ100,000.