Posted on 26 Oct 2009
Many domestic steel makers recently have raced to lower the steel prices although the peak construction season starts because the cheap imported steel is flooding the market. The movement showed that they [local steel producers] are fighting to obtain market shares in the home market that is developing impressively at this time thanks to the government's demand stimulus policy.
Vietnam Steel Corp (VNS) lowered the steel price by 200,000 dong per tonne from the middle of October. The move is the consequence of the increasing steel imports in the recent time and massive rise of new steel mills. At present, the country's steel manufacturing capacity reached approximately seven million tonnes a year, showing a high surplus against the consumption and forcing steel producers to enter into a tense competition.
In September, the steel sales in
A representative of Vietnam Steel Association (VSA) said that domestic market shares of Vietnamese steel makers are being narrowed due to the flooding of imported steel. Last month, over 40,000 tonnes of rolled steel was imported to
Current price of steel billet in the south-eastern Asia market and
Rolled steel price from
The domination of foreign steel is for the available disadvantages of
But with the traditional reason that steel billet (major materials for steel production) must be imported, and domestic market must depend on world market, so the country's steel price since the start of 2009 has continuously increased. Thus, when the complete steel products are imported to
Small production size plus the backward technology in many steel enterprises pushed up production cost, which lead to high selling prices.
