Steel price hikes tariffs, with speculative hoarding?

Steel price hikes tariffs, with speculative hoarding?

While steel production enterprises that the trucks waiting to buy steel jam jam was due to increased tax policy of the Ministry of Industry and Trade, experts confirm that this is speculative hoarding mentality ...

 

13-3 morning, exchanging to Youth, Mr Do Duy Thai, chairman of Vietnam Steel Corporation (Pomina - POM), confirmed: "... is a headache for the police office because trucks queue awaiting pickup factories under Ba Ria - Vung Tau. Despite efforts to deliver the goods to the commercial drivers but shipping a lot of votes, the concentrated than normal car should still wait outside. "
According to Thai, the reason the state of dealers, distributors garage thing to get more steel is an extraordinary way to decide temporary safeguard duty of the Ministry of Industry and Trade issued 7-3 day (rates 23.3% for steel, 14.2% for long products in the form of additional import duty, with effect from the next day 22-3). Tax increases, some people speculated after the price will be higher than 21-3 this time should rush to buy.
He also did not deny that Thai Pomina moderate price adjustments in the steel mill delivery rose by VND250,000 / tonne since 9-3 days, ie two days after the Ministry of Industry and Trade issued the said decision, from 8.7 million / ton to 8.95 million / ton (without VAT). Scheduled from 14-3, Pomina will continue to adjust prices.
There were also long queues waiting convoy took steel plant in Ba Ria - Vung Tau Nguyen Dinh Phuc but, general manager Co., Ltd. a member of the Southern Steel (VNSteel), for that is not because the tax rate increase Ministry of Industry and trade, which due to the accidental coincidence of some raw materials such as steel scrap steel production, steel, ore ... prices tend inched back a long time discount.
With the supply of 40,000 tonnes / month at present, Mr Phuc said the convoy to get found mainly agents, distributors to the cargo under the contract signed with VNSteel. "Most distributors have long-term contracts with the construction work, they have pledged to keep rates stable need for supply sources.
We are still selling ordinary goods, supply still exceeds demand steel production should not talk no goods, or goods from manufacturers pins. The problem is that people pull together for a while it will come than normal winter "- he Phuc explained.
Whatever the explanation such enterprises but Nguyen Van Sua, vice president VN Steel Association (VSA), said that the gold bull market is ridiculous rushing by steel production capacity in the country is far more needs . "The market will regulate according to its real needs, and not be influenced by the demand or virtual information" - he said Sua.
According to the understanding of youth, in January and 2-2016, the total volume of construction steel market consumption of approximately 1.1 million tons, up respectively 36.6 to 90% over the same period in 2015, no accept this is to reach the festival and during the festival months. If additional steel inventory in the enterprise (ie not sold) up to the date approximately 500,000 tonnes 29-2, so the lack of steel very unlikely.
Sua He said that some companies adjust prices citing higher raw material prices could only be accepted if it docked VN materials from April onwards. If still using low cost raw materials purchased in the month before the end of 2015, or even early May 1-2016 but still gained anticipatory style is not reasonable.
Current jam jam trucks in long queues waiting to pick up goods at the factory are not many businesses that steel production by increasing the tax policy of the Ministry of Industry and Trade that out. Market experts also confirmed the hoarding mentality led to renewed speculation that the real cause.

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18/8/2025
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