Domestic steel production exceeded 17 million tonnes in the first ten months of this year, growing 22.8% year on year, according to the Vietnam Steel Association (VSA).
Steel prices will remain stable on the domestic market this month but are expected to increase slightly soon, according to the Ministry of Industry and Trade.
Domestic steel prices are expected to rise in the near future, thanks to increasing construction demand, the real estate market’s recovery and high consumption, Vietnam Steel Association (VSA) said.
Several steel products saw a surge in productivity in May. The bar and angle steel products showed the highest increase of 22.5%, following by rolled steel with 21%.
A spokesperson for Song Da No2 Joint Stock Company (SD2) called up a magazine to grumble that steel prices have skyrocketed, pushing up costs for his company by billions of dong since the prices started to rise.
The domestic steel market has seen a price surge and hoarding before temporary safeguard measures recently imposed on two types of steel imports into the Southeast Asian country, experts said.
The prices of steel decreased by VND200,000-300,000 per tonne at the end of April.
Steel is currently sold at VND16.5-16.7 million a tonne, an increase of VND300,000 per tonne over mid-November this year.
Steel prices has seen a sharp increase of VND300,000 per tonne in the past few days.
The southern branch of the Vietnam Steel Corporation has raised the price of rolled steel by VND300,000 a tonne, the fourth increase in July alone.
Steel retailers are suffering significant losses due to overstock and price cuts during the construction season.
The Ministry of Industry and Trade (MoIT) has asked cities and provinces to boost production and control the price of steel.
The price of steel rose by VND150,000-250,000 per tonne in February.
The southern steel manufacturers decided last week to reduce the steel price by VND200,000 to VND11.19-11.21 million a tonne for steel bars and VND10,75-10.8 million a tonne for rolled steel.