Steel consumption falls strongly in domestic market

The Vietnam Steel Association has reported just 250,000 tonnes of steel were sold in the domestic market in June, a drop of 60,000 tonnes from the previous month, the largest decrease in a single month so far.

The association attributed the reduction in demand to the halt of construction projects in the south in the rainy season as well as the government’s tightened control over investment projects and bank loans.

In addition, the rampant import of cheaper steel from China since the beginning of the year has been another reason behind the lower demand for locally-produced steel.

At southern factories, steel currently stands at 16.6-16.7 million VND per tonne, excluding discounts and value added tax, while prices of the product at northern plants are listed 1-1.1 million VND lower.

VNA

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