Building metal gross sales of the Hoa Phat Group, a number one producer, have declined for 3 consecutive months, after reaching a peak in March when metal costs surged.
In June, Hoa Phat produced 658,000 tons of uncooked metal, a year-on-year enhance of 49 p.c. It offered 569,000 tons of completed merchandise, together with 230,000 tons of building metal and 230,000 tons of hot-rolled coils. The gross sales of building metal have been the bottom quantity within the final 4 months.
In March, the group had made its biggest-ever month-to-month gross sales of over a million tons of metal merchandise, together with almost 480,000 tons of building metal. Its gross sales of building metal, hot-rolled coils, and metal billets all surged over 30 p.c over March 2020.
The group says gross sales of building metal and metal tubes in June dropped in opposition to Could 2021 and June 2020 primarily because of the impacts of the fourth wave of Covid-19 nationwide, particularly in HCMC and southern provinces. Moreover, the wet season has begun, weakening demand for building metal.
Within the first half of these 12 months, the group offered 1.8 million tons of building metal, up 22 p.c on year.
After a sudden surge at the start of these 12 months, metal costs have saved declining in a previous couple of weeks in Vietnam, largely due to a fall in world metal billet costs, particularly in China.
Many building contractors mentioned the costs of home metal merchandise have been nonetheless excessive, reducing deep into their earnings. Metal prices account for 10-30 p.c of a building venture.
By the Vietnam Metal Affiliation, the lower metal costs will decelerate within the coming time and will even go up. To stabilize costs, the affiliation has suggested Vietnamese metal producers restrict exports and enhance provides of hot-rolled metal and uncooked metal within the home market.
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 the final 12 months, following the Normal Division of Vietnam Customs.