Interdisciplinary inspectors check southern steel prices

Interdisciplinary inspectors of the Ministry of Finance and the Ministry of Industry and Trade and the Vietnam Steel Association will check the production costs and the selling prices of steel products at some of the largest steel producers in the southern region, according to the Vietnam Steel Association.

Association vice chairman Nguyen Tien Nghi told the Daily that some of the large steel producers in the region would be checked including Southern Steel Corporation, Pomina, VinaKyoei and Bien Hoa Steel Company.

The three-day inspection will also focus on distribution of steel products and aims at preventing illegal pricing of steel products in the market.

Last week, the interdisciplinary inspectors checked the large steel producers in Hanoi and in Haiphong and Thai Nguyen provinces in the north.

Initially, they found no sign of pricing problems. Most producers in the north claimed they must increase selling prices of construction steel products because of increasing production costs, especially the higher price of imported ingots, said the vice chairman of the steel association.

The rapid increases of steel prices in the market since early this year have been causing many difficulties for construction contractors around the country. Many of them complain the price fever is obstructing them in negotiating construction prices with investors.

However, as observed by the Daily on Sunday at some retailers in HCMC, the price of construction steel products was some VND15.5 million per ton, down by VND700,000 per ton compared to some weeks ago.

Do Duy Thai, general director of Thep Viet Corporation, told the Daily that the lower prices of construction steel products could be because producers are trying to sell out their stockpiled products before this rainy season. The increasing supply could cause a reduction of prices in the market.

Thai said many local steel producers were selling as much as possible by giving more bonuses and discounts to their retailers.

Tags: Vietnam steel industry, Vietnam steel prices