Drastic measures needed to stabilise steel prices

VOV.VN - Ensuring the balance of supply and demand in the local market following steel prices enduring a recent sharp rise of between 40% and 50% compared to last year should be made a priority, according to the Ministry of Finance.

The purpose of this move is to prevent the escalating prices of input materials from raising steel prices unreasonably.

Dang Cong Khoi, deputy director of the Price Management Department, said previous rises in the price of construction steel can largely be attributed to fluctuations occurring in the price of steel billets in the global market.

Furthermore, increasing demand from the Chinese market has forced the price of raw materials for steel production, including scrap steel and steel billet, to continuously increase since mid-October of last year.

Moreover, the imbalance which has occurred between supply and demand can largely be attributed to recent abnormal fluctuations in steel prices.

Khoi emphasized the need to make amendments and supplements to the Law on Prices in order to meet the requirements of the market economy whilst developing a green economy in a sustainable manner, thereby improving the efficiency of state management over prices.

In terms of tax policy, Truong Ba Tuan, deputy director of the Tax Policy Department under the Ministry of Finance, said the nation is likely to consider adjusting its safeguard tax policy for steel billets and construction steel products. This can be done in order to reduce the cost of input materials for steel manufacturers and lower the price of construction steel sold within the domestic market.

Tuan also underscored the importance of devising solutions aimed at balancing supply and demand as a way of enhancing the domestic steel production capacity.

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