The price of construction steel is on the rise despite the fact that the demand for this type of construction material remains weak, insiders have said.

VOV.VN - Hoa Phat Group, the nation’s largest steel maker, announced that it has signed a contract to export a shipment of 8,000 tonnes of construction steel to Mexico this August.

Vietnam’s largest steelmaker, the Hoa Phat Group, sold a total of 3.7 million tonnes of steel products in the first five months of this year, up nearly 70% against the same period last year.

VOV.VN - Ensuring the balance of supply and demand in the local market following steel prices enduring a recent sharp rise of between 40% and 50% compared to last year should be made a priority, according to the Ministry of Finance.

Steel manufacturer Hoa Phat Group sold a total of 869,000 tonnes of steel in April, a surge of 65% compared to the same month last year.

Local construction firms face the risk of bankruptcy as the price of steel has soared 40% recently.

Steel exports in November surged 21.52% month on month and 40% year on year, reaching more than 478,300 tonnes, reported the Vietnam Steel Association (VSA).

Construction steel sales are predicted to recover in the remaining months of 2020 after a fall in the January-August period due to impacts from the COVID-19 pandemic, according to the Vietnam Steel Association (VSA).