Steel Prices in Vietnam Cool Off for First Time in 2026; HPG Cuts 150-300 VND/kg

Overview

Steel prices in Vietnam have recorded their first decline in 2026, with major producers including Hoa Phat Group (HPG) reducing prices by 150-300 VND/kg depending on product type and region. The adjustment, effective early June, marks a reversal after multiple price hikes since the start of the year. While the reduction is modest, it signals a potential easing of cost pressures for construction contractors amid stable supply and lower global iron ore prices.

Key Facts

• HPG and other producers cut steel prices by 150-300 VND/kg in early June 2026, the first decline in 2026.
• In northern Vietnam, steel coil fell ~170 VND/kg, rebar CB300-V dropped ~250 VND/kg, and coil CB240-T decreased 150 VND/kg.
• In central Vietnam, reductions were larger: steel coil down ~220 VND/kg, rebar CB300-V down 300 VND/kg, and coil CB240-T down 150 VND/kg.
• From the start of 2026 through May, steel prices had risen by an estimated 350,000-600,000 VND/ton, with peaks around 16.2 million VND/ton.
• Global iron ore prices have been declining, contributing to the price adjustment.
• Construction demand has not surged as expected, limiting the need for sustained price increases.
• HPG shares closed at 24,150 VND on June 3, 2026, up 1.90% with volume of 20.6 million shares.

What Happened

According to market updates in early June, major steel brands including Hoa Phat, Thep Viet Duc, and other construction steel producers adjusted their selling prices downward by 150-300 VND/kg, varying by product type and region. This marks the first price reduction after consecutive increases since the beginning of 2026.

A representative of a construction materials company in Ho Chi Minh City told Tuoi Tre Online that steel prices had risen by about 350,000-600,000 VND/ton from the start of the year, with some periods hovering around 16.2 million VND/ton. The source noted that supply remains stable, but overall construction material prices are still elevated due to rising transport costs and recovering residential construction demand.

Market Context

HPG, listed on HOSE, is Vietnam’s largest steel producer and a bellwether for the sector. The stock closed at 24,150 VND on June 3, up 1.90% on volume of 20.6 million shares, suggesting the market viewed the price cut as neutral to slightly positive. The steel sector has faced margin pressure from rising input costs and competitive dynamics, but the recent decline in global iron ore prices offers some relief. The broader VN-Index has been volatile amid global macroeconomic uncertainty, but infrastructure spending and real estate recovery remain key drivers for domestic steel demand.

Strategic Significance

For long-term investors, the price cut signals that steel producers are responding to market conditions rather than maintaining artificial pricing power. The modest decline suggests that while demand is not booming, it is also not collapsing. HPG’s ability to adjust prices flexibly indicates operational agility. The company’s vertical integration from iron ore to finished steel provides a cost advantage, but sustained margin improvement will depend on demand recovery from infrastructure and housing projects. The price cut may also pressure smaller competitors, reinforcing HPG’s market leadership.

What to Watch

• Monthly steel sales volumes from HPG and industry data for Q2 2026.
• Global iron ore price trends, as they directly impact input costs.
• Government infrastructure spending announcements and disbursement rates.
• HPG’s Q2 2026 earnings release for margin and volume guidance.
• Any further price adjustments by HPG or competitors in the coming weeks.