|
Steel prices expected to remain stable
Steel prices will only increase slightly in the next few months as there is sufficient supply to meet the rising demand, according to Pham Chi Cuong, Chairman of the Vietnam Steel Association.
Cuong said he expects prices to increase by around 0.5 percent from the current VND11 million (US$620) per ton.
Steel consumption started to recover in April as the government’s stimulus package encouraged construction projects, analysts said. According to the steel association, domestic consumption rose 1.2 percent in the first five months over the same period last year to 1.5 million tons.
Cuong told Bloomberg last month local steel producers were expected to produce about seven million tons this year, easily outpacing the estimated demand of 3.8 million tons.
Dao Minh Thang, Director of Ho Chi Minh City-based Minh Thang Construction Company, said many steel makers have decided to raise prices after seeing demand go up. Thang said steel prices have been hiked six times since the beginning of April.
Do Duy Thai, General Director of Pomina Steel, said such price hikes would not continue. Local steel makers should be careful with any price adjustment lest they end up losing their market share, Thai said, noting that local steel demand has not fully recovered yet.
The worst global recession since World War II has hurt demand for steel from manufacturers and builders, prompting mills in China, the biggest producer, and elsewhere to cut prices. Steel demand in Vietnam has also fallen, leading to higher stockpiles.
thanhnien, agencies
|
