The price of steel is expected to continue increasing on the domestic market due to high input costs and changes to macro economic policies.
The price of steel is expected to continue increasing on the domestic market due to high input costs and changes to macro economic policies.
Viet Nam Steel Association chairman Pham Chi Cuong said the price of material, including iron, coal and oil, were predicted to continue rising.
There were also internal factors such as high interest rates, fluctuating foreign exchange rates and the rising price of electricity.
Cuong said the price of finished steel products was expected to increase by 0.6-0.7 per cent.
He said a 30 per cent cut in electricity volume at present had reduced steel production and forced customers to import ingots to meet domestic demand.
The steel price was currently VND17-19 million (US$795-889) per tonne.
The demand for steel ingots was expected to be 6 million tonnes. Viet Nam was expected to be able to produce only 60 per cent of that total, and would have to import a further 2 million tonnes.
In the first two months of this year, member companies of the association produced 850,000 tonnes of steel, 25.1 per cent more than the same period last year.
(Source: VNS)
