Steel Prices Reduce by VND500,000/Ton
Steel prices have fallen by VND500,000 per ton as compared with late 2008 as the government has agreed to cut the value added tax (VAT) to 5 per cent from 10 per cent from early this month.
Ex-factory steel prices by Thai Nguyen Cast Iron and Steel Company has dropped to VND10.6 million/ton from VND11 million/ton and by Southern Steel Company to VND11.2 million/ton. These prices are excluded VAT.
According to Pham Chi Cuong, chairman of the Vietnam Steel Association (VSA), steel market is coming into stability with increasing sales.
Cuong added Vietnam’s steel market will quickly recover thanks to lower banking interest rates and especially VAT reduction.
There will not be big change in steel prices this year because supply has surpassed demand all over the world, according to the VSA.
The association forecast that total steel sales this year will reach 9 million tons, up 2 per cent-5 per cent on-year. (VietNamNet, Youth)
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