Construction Steel Prices to Keep Soaring-VSA

Vietnam Steel Association November 18 forecast prices of construction steel will skyrocket in near future on the rumor that China plans to raise tax on steel ingot exports, Voice of Vietnam newspaper reported on November 19.

 

China may increase duties on steel ingot to 25 per cent from the current 15 per cent in early December, noted VSA, warning of domino effects on local building material market.

 

Prices of steel ingot imports reportedly increased from US$389 per ton in late 2006 to US$485 in May 2007, US$513 in June, US$523 in July, US$530 in August and up to US$620 by now, VSA figures said.

 

However, China is unlikely to raise the export tax as the prices of its steel ingot are already high, noted Le Ngoc Son, vice director of Viet Y Steel Co.

 

Vietnam Steel Corp and its joint venture currently sell finished steel from VND10 million to VND12 million per ton, up 23 per cent compared to early this year. The prices may reach VND13 million if the Chinese steel ingot prices increase. Worse still, several iron ore providers warned of raising prices by 50 per cent next year on the crude oil and coal prices hikes.

 

Vietnam is now imposing 5 per cent import duties on steel ingot. Vietnam imports most finished construction steels from China, which accounted for 80 per cent of the local market. (www.vovnews.vn))