High consumption to raise steel prices hinh anh 1The prices of steel soar in the market under growing construction demand. (Photo: satthepxaydung.net)

Hanoi (VNA) - Domestic steel prices are expected to rise in the near future, thanks to increasing construction demand, the real estate market’s recovery and high consumption, Vietnam Steel Association (VSA) said.

Nguyen Van Sua, VSA’s Vice Chairman, said the selling price of steel billets and bars had risen since July.

Specifically, steel billet prices increased from 300-310 USD per tonne in July to 315-325 USD per tonne at the beginning of this month. The prices of steel bars also increased from 308-315 USD per tonne to 330-338 USD per tonne.

The prices of building steel, excluding VAT, delivered at factories have remained stable over the past two months at 9.4 million-9.9 million VND per tonne in the north and 9.4 million-9.7 million VND per tonne in the south.

Sua said steel prices could rise further as the prices of steel billets have been rising, while the property market was expected to develop in the last few months of the year.

In addition, reports from VSA showed that the steel output of its members last month reached 1.4 million tonnes, posting a 13.6 percent year-on-year increase.

Steel sales in July reached more than 1.2 million tonnes, increasing 27.3 percent year-on-year, and 20 percent higher from the previous month.

The exports of steel products in July also posted a 57 percent year-on-year rise to reach 246,500 tonnes.

Sua said the surge in both steel production and consumption showed that domestic steel producers could meet the demand for building steel.

However, he said steel businesses should further improve their products’ quality and reduce production costs to offer more competitive prices.-VNA