Steel price likely to decrease in second quarter

Steel price is likely to decrease in the second quarter of this year because weather in Europe and North America has already become warmer, creating more favourable conditions for exploiting and transporting steel, thus contributing to increasing supply of the item of goods, according to the Vietnam Steel Corporation (VnSteel).

The amount of construction steel in stock, manufactured by the domestic steel enterprises, still stands at a safe level of around 200,000 tonnes while the current steel billet stockpile level is high with 530,000 tonnes which is enough to meet demand for this item of goods, according to the Vietnam Steel Association.

In the coming time, shortage of steel will be impossible. The sharp increase in steel price over the past time is possibly due to speculation and hoarding because the big amount of manufactured steel is still in stock.

Currently, the domestic capacity for construction steel lamination reaches over seven million tonnes per year. Four million tonnes of which are supplied by the VnSteel. Meanwhile, the domestic demand for this item of goods is only over 5 million tonnes.

Nhandan

Tags: Vietnam steel industry, Vietnam steel prices

Posted by VBN on Apr 14 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