Vietnam faces steel over-supply of 2.7 tons by end-2011: vsa

Vietnam construction steel production will exceed demand by 2.7 tons by the end of 2011 as 5 steel mills with a combined capacity of 1.5 million tons/year will come into operation between August and December this year

Vietnam construction steel production will exceed demand by 2.7 tons by the end of 2011 as 5 steel mills with a combined capacity of 1.5 million tons/year will come into operation between August and December this year, Vietnam Steel Association(VSA) said.

Five mentioned steel mills are: Thai Trung Steel mill in Thai Nguyen province with a capacity of 0.5 million tons/year; 3 steel mills in Da Nang including Dana Y, Thai Binh Duong (Pacific), and Mien Trung steel mills and An Hung Tuong steel mill in Binh Duong province, each has production capacity of with a 250,000 tons/year, Nguyen Tien Nghi, vice chairman of VSA told the Thoi Bao Kinh Te Sai Gon online on May 25.

Nghi said Vietnam’s construction steel demand is around 6.3 million tons/year while the total steel production capacity will reach 9 million tons/year by end 2011.

The competition among local steel producers will be more and more fierce if not to include the invasion of cheap imported steel, Nghi forecast, adding that quality makes it hard for local firms to seek export solutions.

Nghi also added that other kinds of steel also face the same over-supply problem, citing cold rolled sheet steel supply of 2.7 million tons/year, seamless steel pipe supply of 1.9 million tons/year and plate corrugated iron supply of 1.7 million tons/year.

Vietnam has 30 large-scaled steel mills under Vietnam Steel Association and hundreds of small-scale ones and traditional trade villages. – Stoxplus.com

Tags: Vietnam steel, Vietnam steel industry

Posted by VBN on May 26 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