Positive signs in the world steel market are expected to infuse a new spirit into the steel industry in Vietnam.

Some steel manufacturers, who saw profits plummet in Q2, have bad debts amounting to hundreds of billions of dong.

Although local iron and steel prices have dropped, they are still at high rates, up 1.7 times compared to the end of 2020, causing investors and construction contractors to suffer.

The domestic steel price hike has been attributed to a global price increase. To reduce steel prices, production costs need to be cut.

The Vietnam Association of Construction Contractors (VACC) has asked the Government Office to investigate the price hike and find out if steelmakers were cooperating with each other to push up prices.

Local construction firms face the risk of bankruptcy as the price of steel has soared 40 percent recently.

Vietnamese companies filed complaints against Chinese steel products, accusing them of being sold at prices below the fair market value in Vietnam with dumping margin at 21.3%.

A spokesperson for Song Da No2 Joint Stock Company (SD2) called up a magazine to grumble that steel prices have skyrocketed, pushing up costs for his company by billions of dong since the prices started to rise.