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Steel prices continue to harden
Steel prices are tipped to increase following a rise in the global cost of steel ingot, ballooning demand and a lift in petrol, coal and power charges.
The forecast came from Viet Nam Steel Association Vice Chairman Nguyen Tien Nghi, who said the increase would not be as strong as in the first quarter when the price went up from VND11.5 million (US$605) to VND13.8 million ($726) per tonne.
"The price, which is now running from VND11.5 million [$605] to VND12.7 million [$668] a tonne, has hit the floor," Nghi said. "It can not go down any more".
Nghi's comments followed an increase in the price of steel ingot in the world market.
"Some countries, including Brazil and Australia, want to increase the price of iron ore," he said.
International and domestic market demand also was up and the price of petrol, coal and power had increased since the first quarter, he said.
Domestic companies have stopped importing steel and the volume of stockpiled steel will not meet demand.
Revenue of steelmakers in the first five months of this year decreased by 6 per cent over the same period last year, he said.
During this time, they sold 384,000 tonnes, down 20 per cent over the first five months of last year.
Steel production in June fell 16 per cent compared to May.
Domestic steel consumption this year would be 7-10 per cent higher than last year, about 15 per cent lower than association's predication at the beginning of the year.
vietnamews
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