The price of domestic construction steel is expected to reach VND15 million (more than $617) per ton in 2024, a year-on-year increase of 8 per cent, thanks to positive developments in the global steel market and a strong recovery in Vietnam’s real estate market.

Vietnam’s steel output and price in the domestic market and for export are forecast to recover in 2024. Due to real estate supply falling, the price of construction steel recently stood at VND14.1 million (nearly $580) per ton on average, down 15 per cent compared to the same period last year.

According to a forecast from the MB Securities Joint Stock Company (MBS), the price of domestic steel will be around VND13.9 million ($571.5) per ton on average in 2023, a year-on-year decline of 20 per cent. 

CBRE has forecast that real estate supply will rise next year, with apartments in Hanoi totaling 20,000, up 33 per cent against 2023, and in Ho Chi Minh City 12,000, up 31 per cent.

Such a rise in supply would push up the construction steel price, which could hit VND15 million per ton next year, an 8 per cent increase against this year.

Vietnam’s steel exports totaled 8.3 million tons in the first nine months of this year, a year-on-year increase of 29 per cent, with volumes exported to the EU rising 30 per cent. The share of exports to the EU rose from 19 per cent in the second quarter of this year to 26 per cent now.