Steel, Cement Prices to Remain Stable by Year-end
Steel and cement prices are not likely to increase during the construction season and markets are expected to remain stable until the end of the year, said analysts.
According to the Vietnam Steel Association (VSA), the steel market will see no further price hikes towards the end of the year. It added that the steel prices much depend on the oil market, and they would rise 10-15 per cent maximum if oil prices go up.
Steel prices did increase recently, but due to increased prices on ingots. China, the main supplier of ingot steel, increased prices when the government stopped subsidizing steelworks.
Steel producers reportedly keep 160-170,000 tons in stock per month and analysts estimate that Vietnam will produce 6 million tons, while total demand will be 3.8 million tons only.
Though there have been signs of cement shortages as well, the Vietnam Cement Corporation (VNCC) has assured buyers that “cement fever” will not occur, as it did last year.
Analysts believe that supply is abundant and VNCC has 1.1 million tons on reserve, enough to stabilize markets in Hanoi, Ho Chi Minh City and Danang, while the cement plants continue production.
According to the Vietnam Cement Association, the domestic market will consume 31.5-32 million tons in 2006, of which 6 million tons will be used in May and June, during construction season. And prices have proven to be within reach of local suppliers, hovering at US$750-800,000 (US$50) per ton in the North and VND900-950,000 (US$56.25) in the South.
VNN
Vietnamese
