Source: Intell Asia, July 10, 2009
The construction steel price continued to rise in early July 2009 and in line with this Thai Nguyen construction steel price rose by 100,000 dong per tonne in comparison with the end of June.
The price of construction steel of Thai Nguyen Cast Iron and Steel Joint Stock Co (Tisco) applied from July 7 onwards was posted differently in different regions. At the company's head quarter, the sales price was at 10.95 million dong per tonne (exclusive VAT of 5 percent), up 100,000 dong per tonne against that of July 1.
The company's steel price in Hanoi Branch was 11.02 million dong per tonne and in Da Nang Branch of 11.37 million dong per tonne (exclusive VAT of 5 percent).
Ngoc Lam Investment Joint Stock Co, a major steel distributor, also increased the construction steel price to 11.855 million dong per tonne (inclusive 5 percent VAT and transportation charge in Hanoi).
Vietnam-Italy Steel Joint Stock Co (coded VIS) had earlier announced to raise VIS steel price by 300,000 dong per tonne, applying for all type of steel. This new price will be applied from July 6 onwards.
The main reasons for the increase in steel price resulted mainly on account of the effects of fluctuation in material prices. Most of the input costs have jumped recently. The fuel price has also been adjusted twice since May 2009, by 1,500-1,650 dong per litre. In addition, there has been a rising trend in the world steel billet price lately, while Vietnam is a steel billet importer and it imports 60-70 percent of its total demand.