Stockpiled steel reaches 500,000 tones

In the second quarter of this year, steel consumption dropped sharply, causing more difficulties for a series of steel makers, Vietnam Steel Association (VSA) said.

In details, the total volume of stockpiled steel of enterprises was nearly 500,000 tonnes and the production capacity reached only 50-60 percent. According to VSA’s calculation, steel manufacturers will have to pay some 150 billion dong per month for this volume of stockpiled steel.

The reason for aforementioned situation was attributed to the reduction of public investment of some provinces and cities, VSA’s representative said.

In addition, the statistics showed nearly 30 percent of steel firms are using outdated technology, more than 40 percent of steel enterprises are using middle technology and only 20 percent of them are taking the full advantages of advanced technologies. – SGGP

Tags: Vietnam steel industry, Vietnam steel market, Vietnam steel prices

Posted by VBN on Aug 2 2011. Filed under Steel. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry