Vietnam seeks to stabilize steel prices
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The government has asked steelmakers to implement several steps to control rising steel prices that are hurting construction contractors.
Deputy Prime Minister Le Minh Khai has asked the Ministry of Industry and Trade to push for increased domestic steel production towards stabilizing prices. Steel production in Q1 reached 7.6 million tons, a year-on-year increase of 34 percent, according to the Vietnam Steel Association (VSA)
He also said the export of steel should be lowered to ensure that local demand is met. Steel exports in Q1 rose 59.5 percent year-on-year to 1.6 million tons, according to the VSA.
Meanwhile, VSA has asked its members to prioritize using raw materials for steel production from local producers instead of imported them at high prices so that their operating expenses and selling prices are lowered.
Steel prices in Vietnam have experienced a 40-50 percent surge since the beginning of the year, according to the VSA, forcing construction contractors to suffer losses and turn down contracts.
Questions & Answers
Q.What measures has the government asked steelmakers to take to control rising prices?
What measures has the government asked steelmakers to take to control rising prices?
The government has asked steelmakers to implement several steps to control rising prices. The Ministry of Industry and Trade will push for increased domestic steel production and a reduction in steel exports.
Q.How much have steel prices in Vietnam increased since the start of the year?
How much have steel prices in Vietnam increased since the start of the year?
According to the Vietnam Steel Association (VSA), steel prices in Vietnam have experienced a significant surge. They have increased by 40-50 percent since the beginning of the year.
Q.What impact have the rising steel prices had on construction contractors?
What impact have the rising steel prices had on construction contractors?
The substantial increase in steel prices has forced construction contractors to suffer losses. It has also led to them turning down new contracts, impacting their business operations.
Q.What advice has the VSA given its members regarding raw materials?
What advice has the VSA given its members regarding raw materials?
The VSA has asked its members to prioritize using raw materials from local producers for steel production. This is intended to lower operating expenses and selling prices, rather than importing expensive materials.
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