Over-reliance on input material imports, small production value and outdated technology were among the major weaknesses of Vietnam's steel industry, said a recent report by the Ministry of Industry and Trade.

Steel prices have hit a new high after a series of rapid increases from May through June 2021 when they increased by more than 50% compared to the beginning of the year.

Although local iron and steel prices have dropped, they are still at high rates, up 1.7 times compared to the end of 2020, causing investors and construction contractors to suffer.

VOV.VN - The price of steel has continued to drop by VND300,000 per tonne, marking the third significant fall after reaching a highs back in late 2020.

The Ministry of Industry and Trade (MoIT) has denied rumours that it proposed the establishment of a State stabilisation fund to cope with the sudden increase in steel prices that has impacted many businesses.

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 Ministry of Industry and Trade has proposed the Government consider policies to tighten exports of steel products to stabilise the domestic market amid soaring steel prices in recent months.

Local construction firms face the risk of bankruptcy as the price of steel has soared 40% recently.

Steel exports in November surged 21.52% month on month and 40% year on year, reaching more than 478,300 tonnes, reported the Vietnam Steel Association (VSA).