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Vietnam steel makers raise prices again, citing higher costs
Local steel makers last week increased their prices for a second time this month even as consumption remained low.
Several manufacturers, including Vietnam Steel Corporation, Pomina and Vina Kyoei, raised their prices by up to VND400,000 (US$22.50) per ton. The hikes followed similar ones just a week earlier.
The steel makers said they had no other alternative as they could no longer afford the high power and fuel costs.
Pham Chi Cuong, Chairman of the Vietnam Steel Association, told Thanh Nien higher material costs in the global market had pushed local steel prices upward.
“However, there will be no further sharp fluctuations in prices as steel consumption cannot recover suddenly amid the ongoing global downturn,” he added.
Do Duy Thai, General Director of Pomina Steel, agreed, saying local steel prices may increase again but only slightly.
After the back-to-back increases, selling prices set by steel makers now range from VND10.3-11.3 million ($578-635) per ton. However many retailers have taken advantage of the increases to raise their prices to as high as VND14 million ($786) per ton, Sai Gon Giai Phong newspaper reported.
The newspaper, citing industry sources, said customers should check prices with producers and approved retailers first before making purchases.
According to the Vietnam Steel Association, local steel makers produced 1.82 million tons in the first six months, down 7.28 percent compared to the same period last year.
Cuong said he expects steel consumption to remain low in the third quarter and surge upwards in the fourth quarter. Steel demand for the whole year has been estimated at 4.6 million tons, up 8 percent over last year.
Mai Phuong
thanhnien
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