Steel prices continue going down

Report from Ministry of Industry and Trade showed in April, due to supply exceeded demand, many enterprises planned to offload commodities, so the steel price saw a standstill and tended to fall.

In particular, Pomina Steel Joint Stock Co in South lowered the steel price by 400,000 dong per tone. The steel retail price in the free market also dropped by 200,000 dong per tone to 18.1-18.2 million dong per tone. Notably, the steel retail price was lower than the price at the manufactories by 150,000-200,000 dong per tone due to agents wanted to sell out goods.

Currently, the rolled steel price for the delivery at manufactories slipped to 18.5 million dong per tone and the steel bar price at about 18.4 million dong per tone (including value added tax-VAT already). The ministry attributed the fall in steel price to the decrease in price of steel billet and scrap steel. Particularly, the steel billet price has continued to drop by $15 per tone since April 16.

The ministry said the total volume of steel billet in stock, steel manufacturing, and import in April reached about 580,000 tonnes, increasing 80,000 tonnes from the previous month and it can meet the demand for steel billet of domestic steel mills. The Vietnam Steel Association confirmed the supply in Q2 will meet adequacy the demand and the average consumption in Q2 would reach about 300,000 tonnes each month.

In the first quarter this year, the total steel manufacturing for export reached 470,000 tones, earning an export turnover of $422.9 million, rising nearly 60 percent in volume and 104.9 percent in value from the same period last year.

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

Posted by VBN on Apr 30 2011. 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