Vietnam: Fuel Oil Price Hike Adds US$2.5 for Each Ton of Steel
Local steel makers will have to increase steel production cost by VND40,000 (US$2.5) per ton due to the fuel oil price hike of VND1,000 per kilogram to VND9,500, said Chairman of Vietnam Steel Association (VSA) Nguyen Chi Cuong.
“Plus with the increase of transportation cost, we have not been able to figure out the additional price that steel buyers will have to pay” Cuong said.
It is impossible for steel makers to pay for the additional charges, the VSA Chairman noted.
As of February 18, retail prices of construction steel in the Vietnamese market climbed to VND16 million (US$1,000) a ton, up US$43.7 over that in January, said VSA, giving no forecast in the coming time.
Local transportation companies said they will increase the transport fees by 5 per cent-15 per cent from current due to prices hikes of gasoline, said Chairman of Vietnam Car Transportation Association Pham Manh Hung. (Young People, Labor)
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