Consumption of construction steel continued to decline

08/01/2013

According to Vietnam Steel Association (VSA), in September 2013, construction steel of enterprises (VSA) sold only 353,792 tons, down 3.87% compared with August, and decreased 2, 29% over the same period in 2012.

Construction steel consumption in the country decreased in September because of unfavorable weather for construction, along with a number of policies to remove difficulties for the market has not yet exercise effect.

This is the pressure on the steel business, because the input prices tend to increase slightly as steel billet, scrap steel, HRC, iron ore ... along with the pressure of electricity prices also increased, Then the Chinese contain the element Bo overflowing. While the resale price has not changed, making it more difficult to get a business.

In contrast, with steel construction, the steel pipe manufacturing companies in 9 months still maintained quite good growth. Steel production in September reached 68,734 tons, down 9.47% compared with August, but increased more than the same period of 2012 was 22.11%. In particular, steel pipe consumption in September reached 62,558 tons, down over 11% compared with August, but up 13.33% over the same period in 2012. Inventory through September 30, 2013 is 17,903 tons This is a normal figure, enough for the next month.

However, imported steel is still too big. According to data of General Department of Vietnam Customs, total volume of steel and raw materials for steel production imported into Vietnam, as of August 31, 2013 reached over 8.545 million tons; Import turnover reached over 5.483 billion USD. In particular, steel billet is 275,765 tons, equaling 78% of the same period in 2012; black sheet steel is 3,257,589 tons, equal to 108% over the same period; rolled steel is 113,376 tons ... The amount of rolled steel imports decreased, but the steel rolls of alloys containing Bo increased significantly - very worrying.

Before this reality, if there is no positive action, surely our steel industry is still very difficult, many businesses are exhausted, no revolving fund leading to bankruptcy, although they had to invest quite big on equipment, workshops, machinery, production lines ... /.

According to Industry and Trade Newspaper




 

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