Construction steel market in the first half of June 2025: Supply gradually stabilizes, prices are cautious and reserved before the rainy season

In the first half of June 2025, the domestic construction steel market recorded many fluctuations with the supply-demand situation not really balanced, prices were stable but transactions were still cautious. At the end of the first week of June, steel factories in the South simultaneously increased construction steel prices by 100 VND. Then came the price stabilization period. After the maintenance period of production lines, many manufacturing enterprises restarted operations, contributing to improving supply. However, in some warehouses, especially in the North, the situation of dividing the quantity still occurred with popular steel types, reflecting that the supply did not fully meet the actual demand. However, steel prices remained stable because input costs had not fluctuated strongly and purchasing power had not created significant pressure to increase prices. Prices of scrap and steel billets – two main raw materials – continue to be stable or stagnant, while the gap between imported billet prices and domestic finished steel prices remains quite large, making it difficult for factories to adjust prices upward.

However, scrap purchasing remains a major challenge. Imported scrap output in May fell sharply by about 150,000 tons compared to the previous month, while domestic supply was not enough to meet demand, forcing many factories to increase purchasing prices to ensure input materials. However, the volume of collection has not yet met expectations, increasing pressure on production and the risk of a shortage of construction steel in the coming time. Some businesses also have to compete fiercely in scrap purchasing with importers from foreign markets.

Small orders and general goods are given priority over special or large orders, reflecting the general caution of the whole market. The medium-term outlook for the construction industry is more positive thanks to the policy of reforming administrative procedures in construction licensing and the accelerating wave of public investment. Many key infrastructure projects such as the North-South Expressway, Long Thanh Airport or belt roads are being accelerated in terms of capital disbursement, which is expected to create a significant driving force for steel consumption demand in the final months of the year. However, the approaching rainy season will be a significant obstacle to construction progress in many localities, especially in the Central and Northern regions, which may cause steel consumption demand in the third quarter to slow down. In addition, the merger and adjustment of administrative boundaries in some provinces and cities may also slow down the approval process and implementation of civil construction projects.

In the international market, steel billet prices in China continue to decline in the context of weak construction demand and the ongoing low season. In the Tangshan area, the average price of steel billets has fallen to a multi-year low, indicating a persistent oversupply. However, by mid-month, the prices of rebar and steel billets in China had recovered slightly, with an increase of about 10–20 yuan/ton, mainly due to concerns about the risk of disruptions in the coking coal supply chain from Mongolia.

Overall, the domestic construction steel market is in a period of temporary stability. Supply has improved significantly, but prices have not yet gained momentum due to many factors that have not yet converged to create waves. The development in the coming time will depend mainly on the situation of raw material prices in the international market, as well as the actual progress of domestic projects after administrative and policy changes.

Source: Mysteel