The Vietnam Steel Corporation (VNSteel) headquarters south, 9/7 day has officially announced price increases for steel coil and rebar 30000-180000 / ton compared with the end of 5/2009. JSC Vietnam-Italy Steel (VIS) can also send a written notice to the customer, the branch, the business school is using VIS Steel on the date 06.07.2009 increase of 300,000 VND / ton applies to all types and sizes ....

According to VSA, construction steel selling prices rose 800000-1 million / ton compared to April, while the price at the factory at 10.6 to 10.8 million / ton coil non-6, non-8; and from 10.9 to 11.3 million / tonne steel plant (excluding VAT). The market does not occur "sold out" but many dealers, retail stores called shortage of steel has increased by 2-3 million / ton, up to 14 to 15 million / ton, depending on type and custom agents. Basis to increase steel prices by agents, production companies make is not offset by production costs, fuel prices increase the cost of shipping. VSA also acknowledged by the economic downturn, the domestic steel companies have had to lower prices to stimulate demand product, this stimulus was effective with ingot imports (imports) increased by 20-30 USD / ton, the price of steel scrap imports increased by 15-20 USD / ton, billet import duty increase of 3% and exchange rate differences USD and VND, so the product price increase is now unavoidable.

 

However, when world steel prices edged up recently, demand for steel in the country has increased, some companies rush to adjust the continuous price increase was to destabilize the market. With the current price of steel at the mill, coil imports from Southeast Asian countries are cheaper than the same type of domestic rolled steel from 500000-700000 / ton. Several commercial companies have a massive interest for foreign steel imports for sale cheap, pushing the local steel manufacturing companies in a difficult position.

 

Head South Steel Company said ingot on the Asian markets the past few days has bid 8/2009 up to 475 USD / ton, increased to US $ 40-50 / ton over the month 4. In water, oil prices after 2 revisions recently increased to 1500-1650 dong / liter, compared to prices in 5/2009. Estimated consumption per ton of steel is about 45-50 liters of oil is expected that steel prices will add approximately 60,000 team / ton. Although no specific calculations, but the company's steel price increases and according to market principles, the selling price will be adjusted.

 

Even for companies already active in 50% of embryos Taiyuan Steel Company, the upcoming price increase is no exception.

 

An explanation of this phenomenon, chairman of Vietnam Steel Association (VSA) said that the first months of 2009, steel consumption dropped to 1/3 compared with the same period in 2008 (100-150 thousand tons). Therefore, companies have reduced the price of steel a lot, even at a loss to pay for workers. Along with that, the price of petrol and a range of other cost increases were driven by higher prices of steel products increased by about 100 thousand VND / ton. As expected, total steel production to market 6 months Last year about 2 million tons, the cost will increase due to rising fuel prices for the steel industry amounted to 200 billion. Thus, the business is no other way to raise prices to offset losses.

 

In the last 6 months in steel prices will fluctuate in the direction slightly. General downward trend of the steel industry will certainly affect Vietnam's steel. China and ASEAN countries have cheaper steel prices would cause competitive pressure for domestic steel prices do not increase too much.

 

Chairman Steel Association warned, this time though the ingot and the increase in input costs but businesses can not raise prices of steel "indiscriminate", if not imported steel will enlist influx. Because the coil current build from ASEAN shall enjoy preferential 0% import duty on Vietnam and more, the lower price from 500-700 thousand VND / ton. Recently, the domestic enterprises have to compete with imported steel is due to the brand, product origin unclear, but if the internal steel will rise again lost a competitive advantage compared to imported steel. The domestic steel producers have to be very careful when deciding to raise prices, which would otherwise facilitate cheap foreign steel dominate the market. Moreover, the capacity of the steel industry in 2009 amounted to 7 million tons, while domestic demand only from 3.8 to 4 million tons, plus 700 tons of imported steel. Oversupply businesses should also be very wary of the price increase. On the other hand, the price increase should be considered carefully before the signals of market demand and supply. According to the certification of the construction world, Vietnamese steel has much better quality than Chinese steel. With the coil, this year, some domestic manufacturers printed labels directly onto steel, enabling consumers to distinguish the type of coil has no label, usually produced locally in China Korea. The clarification of the brand, such labeling would be a competitive advantage for domestic producers.

 

Since early this year, the country imported 200,000 tons of construction steel products, including steel from ASEAN countries accounted for over 70%, the import duty rate of 0%, is consumed in the southern provinces for about 9 9 million / ton, while the price of steel shipped by domestic companies are ranged from 10.3 to 10.8 million / ton (excluding VAT). Particularly since the beginning of June until now, many steel trading companies China is approaching the Vietnam partners to offer about 30 types of steel, which is 1/3 of steel construction with an average price of 3,680 yuan / ton (approximately 538 USD).

 

In the week of 19 / 6-25 / 6/2009, there are nearly 40 thousand tons of billets are imported to Vietnam with an average price of $ 405.33 / ton, up 27 / tonne from the previous week. In particular, imports from Malaysia in approximately 17 thousand tons with an average price of 434 USD / ton; unit price of imported steel billets from Ukraine lowest market for 350 USD / ton. HR coil import unit prices during the week at 431 USD / ton, up from the previous week 17 USD / ton (equivalent to 4.27%). Cold rolled steel this week and up 68 USD / ton, up to 593 USD / ton. The average import price of hot rolled steel stood at 426 USD / ton, down 26 / tonne from the previous week. Cold rolled steel prices also fell by 14 USD / tonne from the previous week, down to 491 USD / ton. Hot rolled steel has increased by 23 this week / tonne to $ 433 USD / ton.

 

According to calculations, steel imports from China to be worth about 9.8 million / ton, if additional import duty, freight, VAT, loan interest rates, profits ... certainly not competitive with internal steel not to mention quality. However, the steel processing industry production in China has dropped in price from 7-10% compared to the first quarter I / 2009 and the country is seeking to reduce taxes, reduce prices to boost exports while Vietnam businesses increase product prices in the future, China's steel will be the most formidable competitors.

 

According to the VSA, steel production in the last 6 months of the year reached 1.9 million tons, down 7.28% compared to the same period in 2008. However, total sales volume increased 4.25% to nearly 2 million tons. Number of embryo inventory, production and import in July of about 500 thousand tons for the market to ensure enough steel to the end of August this year.