VNA reported that Vietnam local steel producers are rushing to export steel billets even though shortages in domestic market are causing production difficulties for many Vietnamese producers.

As per report, billets are being exported at USD 1,200 per tonne to USD 1.300 per tonne whereas they fetch about USD 1,000 per tonne for construction grade steel on the domestic market.

Many steel businesses have been forced to cut production by 20% to 30% and save their steel ingots for export. This is the main reason why domestic steel prices are soaring. The price of construction grade steel has increased to VND 20 million (USD 1,250) per tonne and is likely to hit VND 21 million soon

According to the industry insiders, exports of steel ingot by domestic steel producers are to blame for the lack of raw materials and the price hikes of construction grade steel.