Steel price continues dropping by 500,000 dong per tonne

In the interview with Vietnamnet’s reporter, Nguyen Tien Nghi, vice chair of Vietnam Steel Association (VSA) said that within the first three days of this week, the construction steel price continued dropping by 200,000-500,000 dong per tonne. It was the second time that steel price has been lowered by the association’s members since the beginning of this month.

In details, the steel makers in the northern region reduced the sales price by 300,000-500,000 dong per tonne while the steel mills in southern provinces lowered the steel price by 200,000 dong per tonne.

In the past 20 days, the steel price has slumped by 1,000,000 dong per tonne at most. At present, the sales price for steel products delivered at the factory ranged from 13.2-13.8 million dong per tonne (VAT exclusive).

In the retail markets, in some agents in Hanoi, the steel price has also been lowered. The Vietnam-Australia steel products were offered at 14.8 million dong per tonne (VAT inclusive) on May 19, compared to that of 15 million dong per tonne on May 16.
The agents of Thai Nguyen Steel Mill also revealed that the sales price fell sharply from 15.4 million dong per tonne to 14.817 million dong per tonne at present.

In comparison to the highest level in mid April of 16.3-17 million dong per tonne, the retail price of steel products in the market has plunged by 2 million dong per tonne.

The reasons for the slump in steel price can be explained as the sharp drop in sales. The total sales volume in May was predicted to be lower than that of April of 299,000 tonnes and 568,000 tonnes in the previous month.

In addition, the world steel billet price seemed to continue climbing down fro $670 dong per tonne to $610-630 per tonne.

Tags: Vietnam steel industry, Vietnam Steel price