Steel Prices Slightly Fall
Prices of steel in the domestic market have gone down slightly so far this month, the Vietnam News cited Pham Chi Cuong, chairman of the Vietnam Steel Association (VSA) as saying on April 18.
In early April, VSA members said they would maintain their current selling prices even though Vietnam pegged its prices to the world market.
The Vietnamese steel industry said it could lower prices as several traders had been speculating steel on hopes of huge profit.
Before cutting prices, though, they must sell their products and pay back bank loans.
Vietnam produces half of its steel ore and imports the remaining from China, which has begun to increase its prices of steel ore.
Cuong said local steel ore production should expand 70 per cent to maintain a healthy steel market.
Many companies have already made investments and have changed technology to reach their targets, but the delivery system also needs readjustment to avoid price increases.
In the first quarter, steel imports increased 110.7 per cent in value compared with 2007, with 3.44 million tons at a total cost of US$2.4 billion.
VSA forecast that domestic steel consumption this year would rise by 20 per cent over last year due to strong foreign investment and the number of State projects, such as the Son La hydropower plant and the Dung Quat oil refinery, that are still under construction.
The country’s current demand for pig iron is 4.6 million tons, but domestic companies can supply only 2 million tons. (VNS)
Vietnamese
