VN’s steel price hikes seek strong pull-up hand
VGP – A new world list of higher prices of input materials (imported iron ore, coke, steel billet and scrap) for steel production comes into effect today and unavoidably brings up the price of steel products in the domestic market, the Việt Nam Steel Association (VNSA) reported.
Unavoidable increase
of world steel prices
High steel billet price brings up steel price -
Illustration photo
As
reported by the VNSA,
Another report from the Domestic Market Management Team shows that the
imported price of steel billet has hiked up over 40%. By the end of March, the
figure stood at US $614/ton, increasing by US $70-80/ton against previous month
and US $115-130/ton against last December. Also, the scrap price witnesses a
sharp leap of over 70%.
VN to be unavoidably affected
Mr. Phạm Chí Cường, VNSA Chairman, pointed
out the reasons behind the price hikes, that are the increasing steel demand as
the world economy is recovering and the restraint of raw material exportation
as most countries focus on developing their domestic markets.
And these price hikes have
marked up the domestic price of Việt
As imported raw materials must
be put into steel production instantly, steelmakers cannot stock-up their steel
billet too long and in large quantity. At present, the whole nation only has a
total amount of 480,000 tons of steel billet, just enough for one-month
production. Meanwhile the price of steel billet is forecast to higher increase
in the time to come.
What’s
next for VN’s steel in future?
As said, Việt
However, VNSA has pledged to
take a lead in stabilizing the market, ensuring steel supply, and avoiding
speculation and frauds which can hurt consumers’ right.
Chairman Cường also requests
key managers of the sector to regularly submit their reports on market
performance, to propose solution to halt price hikes, and especially to stop
bringing “shock” to consumers.
By Trinh Nguyễn