Firm unexpectedly lowers steel prices

Vietnam Steel Corporation Pomina has just decreased sale prices by VND400,000 per ton compared to early March, bringing rolled steel down to VND18.5 mln per ton and reinforcing steel bars to 18.4 mln per ton (including VAT).

This is the first time the southern hub’s enterprise dropped the steel prize after prices abnormally hiked since late 2010. Other steel manufacturers have yet to make any moves about this issue.

Presently, retail prices of steel in the market are roughly the same as those in steel mills since local manufacturers want to reduce inventory to borrow capital.

In January 2011, the steel ingot price increased slightly by tens of dollars per ton to 600-610 per ton. However, at that time, steel mills still could laminate steel with the steel ingot they imported before at a low price of $580 per ton.

In early February 2011, the steel ingot price rose to $690 per ton but then decreased to $660 per ton and it is now staying at $670. As such, a ton of steel ingot can be imported at VND14 million. If counting on the production cost of 1.5 million dong, the cost price would be 15.5 million dong per ton.

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

Posted by VBN on Mar 26 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