Steel price down due to speculation

Construction steel retail price has started to be on downward trend after a long time of skyrocketing. This has been the first reduction in steel retail price since early this year.

Currently, the steel is sold to consumers at around VND 16 – 16.5 million a tonne depending on different categories, a VND 200,000 per tonne reduction but around VND 500,000 – 700,000 a tonne higher than the selling price of steel at plants.

According to some experts, after a duration of stockpiling steel to keep its price, in the context that the domestic and world steel prices have trended downwards and the amount of steel in stock is big, speculators have started to sell their big amount of steel in stock.

Steel prices at plants over the past 20 days have been kept unchanged whereas the steel retail price has decreased, showing that there has been price manipulation for the item of goods. Despite the decline, the steel price now is still around VND 3.5 million a tonne higher than that in early March this year.

Tags: Vietnam steel industry, Vietnam steel prices

Posted by VBN on Apr 26 2010. 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