7:46:51 PM | 18/9/2008
Steel prices have dropped to VND16.5 million-VND17 million per ton as the purchasing power has halved 50 per cent while ingot steel price has fallen by US$200 per ton to US$750 per ton.
In the previous months, steel prices in Ho Chi Minh City were VND1.5 million-VND2 million per ton higher than prices quoted by manufacturers. Now the gap is just VND500,000/ton.
F6 steel is now being traded at VND17,500/kg, down by VND1,300/kg over the beginning of the month while F10 steel is selling at VND125,000/bar, down by VND15,000/bar.
Pham Chi Cuong, chairman of the Vietnam Steel Association, said that consumption has decreased sharply in comparison with the previous months.
Cuong said that enterprises now have 30,000 tons in stock. In Aug, they sold 120,000-130,000 tons, just a half of that in July (250,000 tons). In the previous years, they could sell some 300,000 tons in July and August.
With the current ingot steel prices, enterprises will incur losses if they sell at VND16 million/ton and make steel with expensive high ingot steel, Cuong said.
The Ministry of Industry and Trade has asked the Industry and Trade Information Center to analyze and give timely forecasts in order to help management agencies to have suitable measures to stabilize the market and help enterprises control their production plans. (VietNamNet, Vietnam Economic Times)
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