Vietnam's Contractors Moan over Steel Price Hikes
Construction companies in Vietnam are facing numerous hardships as steel prices on the domestic market have increased by VND2 million (US$125)/ton over the past two months, state media reports.
“Steel price surges have pushed many contractors into difficulties, making them delay their construction works to negotiate for price adjustments,” said Luong Sy Nhung, general director of Truong Son Construction Company under the Ministry of National Defense.
At present, steel prices have reached VND10-10.5 million/ton on the market, even VND11 million in remote areas while steel accounts for 25 per cent of the total value of each construction work.
Steel prices have gone up sharply since mid-April. They increased by VND200,000-VND300,000/ton in the north in late May and by VND150,000-200,000/ton in the south in early June.
Southern Steel Corporation said it would continue to raise the steel prices by VND200,000/ton from tomorrow [June 20].
The prices may set record VND11 million/ton, said Le Ngoc Son, head of foreign relations department of Vietnam-Italian Steel (VIS) Company, explaining that local steel makers are still heavily reliant on steel ingot imports. (VietNamNet)
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