The steel industry is concerned about slow consumption in the domesticmarket despite a year-on-year rise of 7.22 percent in steel sales inJuly to over 423,600 tonnes.
The Vietnam SteelAssociation (VSA) said most of its members are facing difficulties infinding domestic customers. The prices of steel products have droppedslightly, by between 100,000-200,000 VND (USD) per tonne.
Sales agents are hoping that sales may pick up towards the end of the year, which is usually the construction season.
VSA Chairman Ho Nghia Dung was of the view that low steel consumptionwas due to the economic slowdown, which saw the real estate marketfreezing and many infrastructure projects suspended. In addition, thebuilding of private homes also dropped remarkably.
At the same time, domestic producers are under pressure from cheapimports, which surpassed 7 million tonnes during the first seven monthsof this year.
VSA has urged steel manufacturers torestructure their production to reduce costs and invest more in productquality, so as to enhance their competitiveness on the market.
The association’s chairman also noted the need for legitimate andsuitable technical barriers to encourage domestic production and preventtrade fraud.
The VSA has sent proposals torelevant State agencies asking for anti-dumping investigation of someimported steel products.
In early September, theMinistry of Industry and Trade has issued a decision to imposeanti-dumping tariffs on stainless steel imported from China, Taiwan,Indonesia and Malaysia.
The decision was made basedon results of investigations by the Vietnam Competition Authoritylaunched at the request of Posco VST and Hoa Binh Inox last year.-VNA
