Ministry of Finance's Vietnam Industry & Information Centre said that till the second week of August 2010, there has been no move from steel producers indicating that steel prices may increase further after being pushed up three times in July 2010.

Price of rolled steel at factory is still ranging at VND 14.26 million per tonne to VND 14.32 million per tonne, whereas steel bar is at about VND 14.54 million per tonne (including VAT). Construction steel price in retail market is hovering between VND 12.5 million per tonne to VND 12.9 million per tonne (excluding VAT).

According to Vietnam Steel Association, due to effects of rains and storms, steel consumption in August might reduce further, moderately ranging from 350,000 tonnes to 400,000 tonnes, the selling price thus is likely to remain stable. The country’s total amount of steel consumption in July reached 460,000 tonnes.

According to VSA, since having to compete with foreign companies, domestic firms are unable to raise prices arbitrarily. However, prices may go up in September 2010.

Previously, Ministry of Industry and Commerce also forecasts that in the near future, the global steel prices would go up, since India has raised export tax by 20%, in order to restrict the use of resources in the country. Due to the unpredictable changes in the market, currently, iron ores purchasing contracts are only signed by month or by week.

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