The value of Vietnamese building metal dropped to beneath VND17 million ($732) per ton, however, contractors stated this was nonetheless excessive.
The Viet Duc Metal Firm stated it has lowered costs of metal bars and coils by VND300,000 per ton from July 1, whereas the Thai Nguyen Iron & Metal Joint Inventory Company lowered the costs of metal coils by VND300,000 to round VND16.7 million per ton.
The costs of a ton of metal coils produced by the Hoa Phat Group and the Vietnam-Italy Metal Joint Inventory Firm are VND300,000-600,000 decrease than in June.
The decline in costs of building metal within the Vietnamese market over the previous few weeks has been attributed to decrease costs of metal billets on the earth market.
Probably the most-traded metal rebar on the Shanghai Futures Trade, for October supply, closed down 2.9 p.c at 5,014 yuan ($774.60) a ton, in line with Reuters.
One other contributing issue is weaker demand for building supplies in some localities which have already entered wet season.
Nonetheless, many building contractors stated the costs of home metal merchandise have been nonetheless excessive, slicing deep into their revenue, leaving them with smaller income. Metal prices account for 10-30 p.c of a building venture.
Vietnam produced almost 12 million tons of metal merchandise of various varieties within the first 5 months of this 12 months, a year-on-year rise of greater than 38 p.c, whereas exporting almost 2.8 million tons, up 80 p.c.
The nation exported 1.1 million tons of steel to China within the five-month interval, twice that of final 12 months, in line with the Common Division of Vietnam Customs.