Steel Prices Forecast to Hit Record in September & October

Steel prices on the domestic market will sharply increase (to a record level) in September and October this year to VND9 million ($566) per ton, according to experts in the field.

 

The forecast was made after the world’s three largest ore mining groups, Brazil’s Companhia Vale do Rio Doc, and Australia’s Rio Tinto and BHP, reached an agreement to increase the price of iron ore by 19 per cent, starting in June 2006.  

 

According to the Vietnam Steel Association, world prices of steel ingot are still on the rise. Early this week, steel ingot sold at Saigon Port reached $438 per ton, increasing by $40/ton as compared with early this year while Vietnam imports 80 per cent of materials for steel production.

 

The Ministry of Trade said the domestic price of steel remains stable this month as the volume of stockpiled steel is comparatively large. At present, the domestic price of construction steel stands at VND7.8-8.25 million per ton, rising by VND200,000-300,000 a ton compared with late last year. 

In the first half of this year, Vietnam reported an estimated steel output of 1.34 million tons and steel ingot output of 415,000 tons.