Vietnam steel sales fall to 350,000 tons in Mar

Domestic steel consumption is estimated to have dropped to 350,000 tons in March, down 125,000 tons or 26.7% from February

Domestic steel consumption is estimated to have dropped to 350,000 tons in March, down 125,000 tons or 26.7% from February, the online newspaper Vneconomy reported on April 1, citing the Vietnam Steel Association (VSA).

The Vietnam steel sector are facing with many difficulties, including excessive supply and tough competition of low-price steel imported from China and ASEAN countries.

The country imported 700,000 steel in the first two months while its construction steel production doubled domestic demand. In 2010, construction steel production reached 7.8 million tons as domestic demand only stood at 4.9 million tons, Nguyen Tien Nghi, Vice President of VSA said.

Local steel firms had to cut down the wholesale prices by between VND200,000-VND400,000/ton to around VND18.4 million ( included VAT) from the beginning of March in order to stimulate selling.

This is the first time the steel prices have dropped since December 2010 after rising up to VND2 million/ton from the beginning of this year.

Domestic steel consumption is estimated to reach 11.7 billion tons this year, increasing 8% from 2010, the online newspaper, Dinh Duy Tam, General Secretary of the Vietnam Steel Association (VSA) forecast. – Stoxplus.com

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