Rise forecasted in Vietnamese steel prices

Vietnam's Ministry of Trade has forecasted that steel prices will rise in the upcoming days regardless of the high level of inventories. According to the ministry's forecast, in November, the wholesale finished steel price will rise to the level of VND 8,100 per kg ($0.5), while the retail finished steel price will increase to VND 8,600 per kg ($0.54). Currently, finished steel is being sold in the Vietnamese domestic market at VND 7,600-7,750 per kg ($0.48) in the northern provinces and VND 7,800-8,150 per kg ($0.5) in the southern provinces. In addition, the Vietnam Steel Association (VSA) has foreseen that construction steel price will rise slightly in November, by a margin of VND 50,000-100,000 per ton (approx. $5), due to the rise in the ingot steel price of VND 240,000-320,000 per ton (approx. $17). Moreover, the scrap ban regulations imposed by the Vietnam government have limited scrap imports to the country and have caused confusion among imported scrap consumers and customs officials regarding which companies are allowed to import scrap. The regulation clearly forbids trading companies to import scrap. However, the regulation is unclear on the subject of whether steel producers are allowed to import scrap. The regulation's lack of clarity may cause a shortage of scrap in the country and, as a consequence, a scarcity of ingot steel. The latter may lead to a rise in prices for ingot steel in Vietnam.