Vietnam seeks to stabilize steel prices
A man loads steel at a port of the Hoa Phat Steel Plant in Hai Duong Province. Photo by Reuters / Kham.
The government has asked steelmakers to implement several measures to control rising steel prices that are hurting construction contractors.
Deputy Premier Le Minh Khai called on the Ministry of Industry and Commerce to push for an increase in domestic steel production in order to stabilize prices. First-quarter steel production reached 7.6 million tonnes, a 34 percent year-over-year increase, according to the Vietnam Steel Association (VSA).
He also said steel exports should be reduced to ensure that local demand is met. Steel exports in the first quarter rose 59.5 percent year-on-year to 1.6 million tonnes, according to the VSA.
Meanwhile, VSA urged its members to prioritize the use of raw materials for steel production from local producers instead of importing them at high prices in order to reduce their operating expenses and costs. selling price.
Steel prices in Vietnam have skyrocketed 40 to 50 percent since the start of the year, according to the VSA, forcing construction contractors to suffer losses and turn down contracts.
Steel costs represent 10-30% of a construction project.