Vietnam News Service reported that steel companies nationwide have raised prices by VND 100,000 to VND 150,000 per tonne over the last couple of weeks, with industry experts predicting more increases to come.

According to construction steel distributors, the price of steel rod has reached about VND 9.8 million per tonne while steel bar is going for about VND 10.5 million per tonne. A number of distributors blamed the price increase on higher import duties, which traders have passed on to customers.

Mr Nguyen Tien Nghi vice chairman of Vietnam Steel Association said that higher prices on the international market for pig iron were the primary factor driving up the costs of steel. He added that pig iron imported from Russia and Ukraine had risen from USD 300 to USD 420 per tonne since late February, having a strong impact on the domestic steel market.

Meanwhile, Van Loi Co Limited will build a 500,000 tonne capacity steel complex in Trung Ha Industrial Zone in the northern province of Phu Tho under a plan approved by Deputy Prime Minister Mr Hoang Trung Hai. The provincial People’s Committee and the Ministry of Industry & Trade will conduct a feasibility study on the project which, if positive, will result in the addition of the project to the nation’s steel development plan for 2007-15.