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Construction steel prices sliding further
The steel price has decreased to VND16.5-17mil/tonne as the purchasing power has dropped by 50%, while the ingot steel price has fallen by $200/tonne to $750/tonne.
In previous months, the steel prices in HCM City were always VND1.5-2mil/tonne higher than the prices quoted by manufacturers. Now the gap is VND500,000/tonne only. F6 steel is now trading at VND17,500/kg, down by VND1,300/kg over the beginning of the month, while F10 steel is selling at VND125,000/bar, down by VND15,000/bar.
Pham Chi Cuong, Chairman of the Vietnam Steel Association, said that consumption has decreased sharply in comparison with previous months.
Cuong said that enterprises now have 30,000 tonnes in stock. In August, they sold 120-130,000 tonnes, just a half of that in July (250,000 tonnes). In previous years, they could sell some 300,000 tonnes in July and August.
“With the current ingot steel prices, enterprises will incur losses if they sell at VND16mil/tonne and make steel with expensive high ingot steel,” Cuong said.
The Ministry of Industry and Trade has asked the Industry and Trade Information Centre to analyse and give timely forecasts in order to help management agencies to have suitable measures to stabilise the market and help enterprises control their production plans.
VNA
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