When prices start nhich up, many businesses fear prices will increase rapidly again should purchase the storage of goods with a lot.

Steel prices following a period of time down low, with only a half compared with the high price point, then recovered this month 7-2008 are signs of recovery when within three weeks consecutive increases in the price of almost a million tons. Will steel prices will rise or just a fluctuation in the short term?

Embryo steel prices in Vietnam

Start this week, many steel companies such as Southern Steel, Pomina has been officially adjusted price increase of 300000-400000 per ton compared with the old price. Southern steel rolls from 11.3 million increased to 11.6 million tons; Pomina Steel rolls from 11.4 million increased to 11.8 million tons.

This is the third steel price increase continuously. Before that, in the end of March 11-2008, market demand has twice adjusted the rate of increase of 600000-800000 / ton.

According to Mr. Nguyen Manh Duong - General Director of Joint-Stock Company Nguyen Phong - units distributed to various manufacturers of steel, domestic steel prices by increasing recently, embryo growth rates in the world increased again, although no high-level increase lam. Accordingly, 11-2008 months from the beginning until now, embryo growth rates in the world at 315 USD increased to 450 USD per ton.

Besides, past the Government stipulated rate of import tax rate of embryo steel and steel products of high protection to the domestic steel industry led to volume of steel imported from China, Ukraine, Thailand, India ... has been significantly reduced. This is also the reason for the market to increase domestic steel prices.

According to Mr. Duong, currently Greece survival of the "on" the reserve component has been exhausted so people have a need to be taken in the factory. Therefore, competition between inventory and new production has been reduced a lot compared to before.

Price will be difficult to make powerful

According to Mr Tam, to reason and steel price increases derived from the enterprise business, distribution. Accordingly, in a period of reduced steel prices have hit bottom, are now signs "ngoc first day" so many businesses fear prices will increase again purchased with the storage of goods relatively more.

Mr Tam that the domestic steel prices will not be sudden changes even though the demand is very long and steel can recover the purchase price the same way here a few months. Hopefully in the coming time here, measures the size of the state give will promote effective at that size to market demand and steel.

From the measured changes in difficult steel market in the country and the world, very difficult to predict the exact price fluctuation will compete in the coming time. If ago, when steel prices tend to increase, the distributor of steel and other contractors actively "grapple" thi this may seem very careful.