Nhan Dan – Domestic steel consumption rose sharply in August compared to July, said Nguyen Tien Nghi, deputy head of the Vietnam Steel Association (VSA).
In August, domestic steel businesses produced 438,000 tonnes of steel and 483,000 tonnes of steel was consumed, up 34% over July. However, the 375,000 tonne stockpile is still quite high,”
According to the VSA, there were positive changes in the steel market because it is the dry season when construction work resumes. Government measures and lower bank interest rates also helped the situation.
The price of steel increased by VND200,000 - 400,000 per tonne over the previous month. Steel businesses had to sell at a loss, below production cost, in June and July because of the drop in consumption and large stockpiles.
Current steel prices, between VND15.6 - 15.7 million per tonne in the north and VND 16.5 - 17.2 million per tonne in the south, are just equal to production cost, said the VSA.