Construction steel price keeps falling

In the first days of last week, the price for construction steel continued slumping by 200,000 – 500,000 dong per tonne.

At present, the steel price posted at the steel mills has fluctuated around 13.2-13.8 million dong per tonne (VAT exclusive).

The retail price for steel products has lowered sharply. For example, the sales price of Vietnam-Australia steel climbed down from 15 million dong per tonne on May 16 to 14.8 million dong per tonne on May 19 (VAT inclusive).

In addition, the steel price offered by retailers was 100,000-300,000 dong per tonne lower than that offered at the steel mills.

Vietnam Steel Association (VSA) revealed that this is the second time that the enterprises have reduced the steel prices since the beginning of May. It is predicted that the sales volume in May will be much lower than that of 299,000 tonnes in April and 568,000 tonnes in May.

Meanwhile, the world price of steel billet stood still during last months and tended to fall from $670 per tonne to $610-630 per tonne.

In order to deal with this situation, the domestic enterprises have to recalculate because in case they keep large volume of stockpiles steel, the interest that steel traders have to pay will be much larger than lowering the sales price. Therefore, many enterprises accept to suffer loss from lowering the steel sales price.

Vietstock

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