World steel prices fall for the eighth time in a row

Steel prices have fallen for the eighth consecutive time since mid-May, with an overall decline of nearly 13 percent.

Largest steelmaker Hoa Phat Group slashed prices for rolled steel and rebar for the eighth time over the weekend, cutting prices by VND2.4 million ($102.61) since mid-May.

Other steelmakers such as Viet Nhat, Viet Y, Kyoei and Pomina have also cut prices in the past two months.

The decline in steel prices occurred against the background of weakening demand and falling prices for raw materials.

According to stockbroker SSI Research, domestic demand for steel fell 6% year-on-year in the first five months.

Steel production in April and May fell by 32% compared to the same period last year.

SSI Research reported that rising prices for construction materials have delayed infrastructure projects, which may be one of the reasons for the fall in steel prices.

Tighter real estate development policies have also weighed on steel prices, he added.

Hot rolled coil prices have fallen 15-20 percent in China and the US over the past three months due to contraction in construction and production.

Prices for coke, one of the raw materials for steel production, have fallen 36% from their peak in March, while iron ore prices have fallen 13% over the past three months, according to SSI Research.

Another brokerage, VNDirect, expects a recovery in steel consumption next year thanks to government investment and a recovery in the residential real estate market.