Viet Nam’s steel market was forecast to be in good shape in the first quarter of this year despite high prices, said the Viet Nam Steel Association (VSA).

VSA Vice Chairman Nguyen Van Sua said the price of steel rose from US$70 to $92 per tonne throughout January and February, but has now fallen to $86-87 per tonne.

The sector imported 90-95 per cent of materials for manufacturing, including iron ore, iron scraps and coke fuel, he said, adding that globally high prices affected domestic costs.

Over 1.95 million tonnes of steel was sold in January-February, up 18.9 per cent year-on-year. Of which, more than 456 tonnes were for export, up 28.8 per cent from January 2018.

In preparation for the peak construction season in April-May, firms had been buying huge volumes of steel to stockpile. The government had also focused on public investment and promoting the construction market with economic prospects bright for this year.

Sua said the sector was expected to grow by a record 10 per cent in 2019.

Domestic firms suggested the Government take measures to control massive imports of low-cost steel from China, which caused losses to domestic manufacturers. — VNS