|
Steel sales sluggish on market uncertainties
Steel consumption in Vietnam has fallen for the fifth consecutive month this year and more than 900,000 tons of finished steel and billets have been left unsold, the Vietnam Steel Association (VSA) said.
VSA estimated local steel consumption this month would be 110,000 tons, down from 120,000 tons last month and 250,000 tons in July.
Very few construction projects have begun recently on fears that the current storm season could impede progress, said experts.
Last week, VSA said steel consumption in Vietnam may drop this year after the central bank raised interest rates to fight inflation and the government asked state-owned companies to halt construction projects that were not crucial.
Steel prices have fallen sharply from VND20-21 million (US$1,208-1,269) per ton in May to VND15-16.5 million this month.
According to VSA, more than 400,000 tons of finished steel and 500,000 tons of billets are being stored in warehouses around the country.
The steel association said it has asked the government to lower export duties on billets to 2 percent and then create a plan to fully eliminate the tax later.
Earlier this month, the Ministry of Finance halved the 20 percent export tax on iron and steel to help local producers overcome domestic market stagnation.
The finance ministry doubled the tax to 20 percent in August to slow exports on concerns there would be a shortage of steel for domestic consumption at the end of the year.
Thanhnien
|
