Domestic steel prices drop substantially

The Vietnam Steel Association (VSA) disclosed that domestic steel prices have suddenly dropped by VND200, 000- 300,000 per ton compared to the beginning of the year.

After two months, the price of steel has declined by VND300, 000 ($14) per ton.

According to Nguyen Tien Nghi, Deputy Chairman of VSA, the main reason for the fall of domestic steel price is the cancellation of public investments and the halt of unnecessary projects.

In addition, steel prices the world over have decreased and many investors have cut investments in construction in response to the Government’s policy to minimise inflation.

Steel companies had to reduce their prices to increase market demand, Nghi said.

He also predicted that the price would continue to fall in the following months as the policy had proved effective.

In the first two months of the year, Viet Nam consumed more than 900,000 tons of steel. Total sales in March were an estimated 400,000 tons, a month-on-month decline of 75,000 tons.

Tags: Vietnam steel industry, Vietnam steel market, Vietnam steel prices

Posted by VBN on May 3 2011. Filed under Steel. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry