Steel prices may increase in the coming time

Vietnam Steel Association predicts that steel prices will likely be adjusted upward in the coming time.

According to the report of the Vietnam Steel Association (VSA), in the current context, the domestic construction demand is good, along with positive signals of the macro economy, the real estate market recovers, so the amount of long steel produced and consumed still maintains a fairly high output level. Along with that, the association also forecasts that steel prices will likely be adjusted upward in the near future.

Steel prices may increase in the coming time (Illustration photo)

Mr. Nguyen Van Sua, Vice President of VSA, said that the selling price of scrap steel products has not changed much since the beginning of July. However, the price of steel billets and steel bars has increased significantly. Specifically, steel billets from the beginning of July were 300 - 310 USD/ton, which increased to 315 - 325 USD/ton in early August. Steel bars also increased similarly from 308 - 315 USD/ton to 330 - 338 USD/ton.

Domestically, construction steel prices in July and early August 2016 were generally relatively stable. Prices at factories in the North were 9.4 - 9.9 million VND/ton; in the South they were 9.4 - 9.7 million VND/ton (excluding 10% VAT, delivered at the factory...). However, Mr. Sua said that the possibility of price increases in the coming months is very high.

The reason given by Mr. Sua is that the price of billet, scrap steel in general and Chinese billet prices tend to increase compared to last month by 10-20 USD/ton; the market enters the last months of the year when construction is somewhat more prosperous...

According to VTV