Steel prices will not fluctuate

Steel inventories are rising, and businesses are even having to strengthen their retail systems to compete with steel from China and Southeast Asia.

Steel production in May has gradually decreased in both output and price, and inventories have increased. Steel production of all kinds in 5 months is estimated at nearly 2.3 million tons, up 3.4% over the same period (while in 4 months it increased by 9.8%), of which round steel is estimated at 1.9 million tons, up 3.8% over the same period.

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However, in preparation for the production season, the steel billet output of Vietnam Steel Corporation in 5 months is estimated at 505,000 tons, up 30.2% over the same period. Steel consumption in the month decreased due to the impact of the implementation of the policy of cutting public investment, suspending and postponing unnecessary projects. The inventory of construction steel is about 450,000 tons, steel billet is about 500,000 tons.

According to the Ministry of Industry and Trade, domestic steel prices have decreased significantly due to the impact of falling prices of steel billets and scrap steel on the world market and because domestic steel has to compete with imported steel from China and Southeast Asia. Currently, the price of construction steel delivered to the factory ranges from 15.6 to 16.2 million VND/ton (excluding VAT). It is forecasted that with the current amount of steel in stock and monthly production output, it will be enough to meet the demand for this year's construction season; Domestic steel prices in the coming time will not increase dramatically even if the price of steel raw materials in the world increases. Therefore, domestic enterprises need to invest more in retail systems and sales to the construction site to ensure stable output and maintain market share.

During the month, Son La Iron and Steel Factory with a capacity of 300,000 tons/year, a closed system from mining, ore selection to production of iron and steel products, with a total investment capital of up to 1,700 billion VND, started construction in Son La province.

According to VOV