Domestic steel prices likely to rise in December

The prices of domestic steel are likely to continue increasing in the coming time due to higher VND/USD exchange rate and borrowing interest rate

The prices of domestic steel are likely to continue increasing in the coming time due to higher VND/USD exchange rate and borrowing interest rate, the online newspaper VnEconomy reported on December 8, citing Nguyen Tien Nghi, Vice president of (VSA).

Wholesale prices of steel went up two times of VND500,000/ton to between VND13.4 million-VND14 million/ton in November for factory orders while the retail steel was sold at between VND16.5 million/ton-VND16.7 million/ton.

However, the production cost of steel currently reached VND14.5 million per ton as the domestic dollar prices surged to around VND21,500 in the market and the annual borrowing interest rate rose at 19%, Nghi said.

The local steel firms sold 520,000 tons of steel in November. The steel consumption is estimated to stand at the high level of 500,000 tons in December, totaling 4.9 million tons for the whole year of 2010 due to the peak construction season in the end of the year. – Stoxplus.com

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

Posted by VBN on Dec 9 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