Prices of steel products to rise

Prices of steel products are forecast to continue rising in the latter months of the year due to a hike in the prices of steel ingot and steel scrap. — Photo baodauthau.vn

HÀ NỘI — Prices of steel products are forecast to continue rising in the latter months of the year due to a hike in the prices of steel ingot and steel scrap.

This was stated by the Vietnam Steel Association (VSA).

Nguyễn Văn Sưa, deputy chairman of the association, said because prices of input materials have been increasing strongly, steel producers have to raise the selling price of the products to offset production costs.

In August alone, steelmakers in the northern region had to increase prices five times, with a combined increase of VNĐ 一. 一 million (US$ 四 八. 八) per tonne from VNĐ 一0. 七 七 million per tonne.

In the same month, steel producers in the southern region hiked prices three times. Prices of steel products in the region currently range from VNĐ 一 二. 四 million per tonne to VNĐ 一 二. 七 million per tonne.

According to VSA, steel scrap is being imported at $ 三 五0- 三 五 四 per tonne, $ 四0 higher than the price one month ago. Domestic steel scrap is being sold at VNĐ 六. 八- 七. 二 million per tonne, compared with VNĐ 六. 三 五- 六. 五 五 million in August.

The price of imported steel ingot in early September was quoted at $ 五 四0- 五 四 五 per tonne,  一 三 per cent higher than early August. Price of domestic steel ingot went up from VNĐ 一0. 五 million per tonne to VNĐ 一 二. 一 million.

VSA deputy chairman Sưa predicted, “Steel ingot price will likely surge to VNĐ 一 二. 七 million per tonne, thus the price of steel products would continue moving up this month.”

Last month, the local steel industry produced  一 三 million tonnes, an increase of  一 七. 四 per cent compared with the same period last year. Of the total,  一 一 tonnes were sold in the local market,  一 四. 九 per cent higher than August  二0 一 六.

Việt Nam also exported  二. 九 八 million tonnes of steel products from January to July, earning revenue of $ 二 billion, a rise of  二 七 per cent in volume and  五0 per cent in value against the corresponding period. — VNS