Steel ingot producers find cash in exports

Local steel producers are rushing to export steel ingots, even though the domestic market can only afford 40 percent of raw materials for manufacturing steel.

Shortages of steel ingots are causing production difficulties for many producers. Steel ingots are exported at a steep 1,200-1.300 USD per tonne, but only fetch about 1,000 USD per tonne for construction-grade steel on the domestic market.

The more steel they produce, the more money they lose. Many steel businesses have been forced to cut production by 20 to 30 percent and save their steel ingots for export.

This is the main reason why domestic steel prices are soaring, The price of construction-grade steel has increased to 20 million VND (1,250 USD) per tonne . It is likely to hit 21 million VND soon

According to the industry insiders, exports of steel ingot by domestic steel producers are to blame for the lack of raw materials and the price hikes of construction grade steel.

Local producers exported 7,200 tonnes of steel ingot in April and 74,000 in May.

VNA

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