Demand for steel drops 30% compared to last year

Demand for construction steel has declined by 30 per cent compared to the same period last year despite the peak construction season, according to the Viet Nam Steel Association.

The decline is attributed to the global decrease in raw materials as well as low demand in the domestic market. Construction steel prices started dropping by VND400,000 (US$19.32) per tonne in April.

According to the association, the domestic steel supply will be maintained. Steel consumption in the second quarter of 2011 is expected to stand at 300,000 tonnes per month. In order to curb inflation, the Ministry of Finance has listed construction steel for tax and price checks, inhibiting the price hike of construction steel during the coming months. — VNS

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

Posted by VBN on May 10 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