Vietnam steel sales to reach 11.7Bln tons in 2011

Domestic steel consumption is estimated to reach 11.7 billion tons in the next year, increasing 8% from 2010.

Domestic steel consumption is estimated to reach 11.7 billion tons in the next year, increasing 8% from 2010, the online newspaper Saigongiaiphong reported on November 7, citing Dinh Duy Tam, General Secretary of the Vietnam Steel Association (VSA).

Many steel firms started to boost up exports to Laos or Cambodia markets to deal with the problem of domestic steel over supply, Tam said.

Tam added that Vietnam only exported 300,000 tons of steel each year; however it is estimated to increase to 1 million tons worth $1 billion of which Posco company with a capacity of 1.2 million tons of steel each year is expected to contribute to 40% of the country’s steel export this year.

Earlier, VSA predicted that the demand of construction steel is expected to increase 400,000 tons each month in the rest of year due to the coming peak of constructive season.

The steel stockpiles were around 270,000 tons until October 31. The steel firms are also preparing to store 450,000 tons.

The domestic wholesale prices of steel is likely to increase by VND500,000/ton to between VND14 billion-VND14.2 billion per ton in the coming time, Nguyen Tien Nghi, Vice president of (VSA) said. – Stoxplus.com

Tags: Vietnam steel industry, Vietnam steel market