Domestic wholesale steel prices suddenly fall VND400,000/ton

Pomina Steel company has cut down the wholesale prices by VND400,000/ton to VND18.5 million per ton for rolled steel and VND18.4 million ( included VAT) for steel bar from the beginning of this month

Pomina Steel company has cut down the wholesale prices by VND400,000/ton to VND18.5 million per ton for rolled steel and VND18.4 million ( included VAT) for steel bar from the beginning of this month, the online newspaper Tuoitre reported on March 21.

The retail prices of domestic steel also declined by VND200,000/ton to between VND18.1-VND18.2 million/ton, VND150,000-VND200,000 lower than the steel sold at the factory.

This is the first time the steel prices have dropped since December 2010 after rising up to VND2 million/ton from the beginning of this year, especially after the country devaluated domestic currency by 8.5% on February 11.

This fall is different from the earlier forecast of the Vietnam Steel Association (VSA) as saying that domestic steel prices are likely to continue increasing in the coming time due to higher world prices of steel material and the Tsunami has recently damaged Japan, biggest steel exporter in the Southern Asia, resulting in a shortage of steel supply in the coming time.

Local traders said that they reduced the retail prices, even lower than wholesale, to stimulate the domestic consumption.

The March steel sales decreased by 60% from February to around 25,000 tons, a steel firm in the Southern area said.

Domestic steel consumption is predicted to reach 11.7 billion tons this year, increasing 8% from 2010, the online newspaper, Dinh Duy Tam, General Secretary of VSA forecast – Stoxplus.com

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

Posted by VBN on Mar 21 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