Rolled steel being processed at Viet Y Steel JSC’s Plant. (Photo: VNA) Hanoi (VNA) – Steel prices will remain stable on the domestic market thismonth but are expected to increase slightly soon, according to the Ministry ofIndustry and Trade.
The ministry said in February that local steel prices, excluding value addedtax (VAT), were similar to those of the previous month - 9.9-10.6 million VND (434-465USD) per tonne of common steel bars in the north, and 10-10.7 million VND pertonne in the south. The price of rolled steel products stood at 10-10.6 millionVND per tonne in the north and 10.2-10.9 million VND per tonne in the south.
Those prices will remain intact this month due to high supply and stabledemand, as well as stability of the global steel prices.
However, those prices will likely increase 1-2 percent because the localconstruction market will experience strong growth in major cities this year dueto high housing demand, the ministry said. Increasing demand for publicinvestment will also push up prices.
The World Steel Association forecast that steel markets in Thailand, Malaysia, Vietnam,Indonesia and the Philippines would grow 6 percent due to demand for publicinvestment and expansion of infrastructure, reported cafef.vn.
Meanwhile, according to the Government’s development plan for the steelindustry by 2020, Vietnam will lack 15-20 percent of steel beams every year.
The ministry said that in the first two months of 2017, the steel industryproduced 838,700 tonnes of drawn steel, a year-on-year increase of 21.4 percent;more than 1 million tonnes of rolled steel, a year-on-year surge of 35.4 percent;and 722,200 tonnes of flat and angle bar, up by 7.1 percent year-on-year.
The Ministry of Industry and Trade said domestic steel production was able tomeet the entire demand for steel ingots, steel beams and cold rolled steelat 7-8 million tonnes per year.
But Vietnam could not produce domestically hot rolled steel that is essentialinput material for many industries, such as cold rolled steel, galvanisedsteel, steel pipe, shipbuilding and manufacturing, with a high demand on 10million tonnes per year.
The nation still must import this product, resulting in a growing trade deficitand opening the door to cheap, low-grade imports to Vietnam.
The General Department of Customs reported that during the first two months ofthis year, the country imported 2.7 million tonnes of steel, spending 1.4billion USD. The imports surged by 0.2 percent in volume and 49.3 percent invalue.
Average import price in the first half of February reached 538.4 USD per tonneof steel, a year-on-year increase of 56 percent, and 378.7 USD per tonne ofsteel ingots, a year-on-year surge of 40 percent.
The Vietnam Steel Association said cheap price of steel imports has presentedlocal steel producers with difficult competition. To protect local steelproducers, the association has proposed that the Government impose defencemeasures for some imported steel products.-VNA
The ministry said in February that local steel prices, excluding value addedtax (VAT), were similar to those of the previous month - 9.9-10.6 million VND (434-465USD) per tonne of common steel bars in the north, and 10-10.7 million VND pertonne in the south. The price of rolled steel products stood at 10-10.6 millionVND per tonne in the north and 10.2-10.9 million VND per tonne in the south.
Those prices will remain intact this month due to high supply and stabledemand, as well as stability of the global steel prices.
However, those prices will likely increase 1-2 percent because the localconstruction market will experience strong growth in major cities this year dueto high housing demand, the ministry said. Increasing demand for publicinvestment will also push up prices.
The World Steel Association forecast that steel markets in Thailand, Malaysia, Vietnam,Indonesia and the Philippines would grow 6 percent due to demand for publicinvestment and expansion of infrastructure, reported cafef.vn.
Meanwhile, according to the Government’s development plan for the steelindustry by 2020, Vietnam will lack 15-20 percent of steel beams every year.
The ministry said that in the first two months of 2017, the steel industryproduced 838,700 tonnes of drawn steel, a year-on-year increase of 21.4 percent;more than 1 million tonnes of rolled steel, a year-on-year surge of 35.4 percent;and 722,200 tonnes of flat and angle bar, up by 7.1 percent year-on-year.
The Ministry of Industry and Trade said domestic steel production was able tomeet the entire demand for steel ingots, steel beams and cold rolled steelat 7-8 million tonnes per year.
But Vietnam could not produce domestically hot rolled steel that is essentialinput material for many industries, such as cold rolled steel, galvanisedsteel, steel pipe, shipbuilding and manufacturing, with a high demand on 10million tonnes per year.
The nation still must import this product, resulting in a growing trade deficitand opening the door to cheap, low-grade imports to Vietnam.
The General Department of Customs reported that during the first two months ofthis year, the country imported 2.7 million tonnes of steel, spending 1.4billion USD. The imports surged by 0.2 percent in volume and 49.3 percent invalue.
Average import price in the first half of February reached 538.4 USD per tonneof steel, a year-on-year increase of 56 percent, and 378.7 USD per tonne ofsteel ingots, a year-on-year surge of 40 percent.
The Vietnam Steel Association said cheap price of steel imports has presentedlocal steel producers with difficult competition. To protect local steelproducers, the association has proposed that the Government impose defencemeasures for some imported steel products.-VNA
VNA
