Steel industry sees slowdown hinh anh 1Illustrative Image (Source: Internet)
Hanoi (VNA) – The domestic steel industry has seen a slowdown in recently months with weak steel sales and price drops, according to the Vietnam Steel Association (VSA).

Some factories have faced difficulties and are likely to suffer losses, it added.

VSA members produced over 730,000 tonnes of steel in April, an increase of 3.6 percent from the same period last year, but a decrease of 14.26 percent from the previous month, said VSA Vice President Nguyen Van Sua.

More than 635,000 tonnes of steel were sold last month, down 14 percent year on year and 20 percent from March, he said.

Sua added that the domestic price of steel in April was 400 – 700 VND per kilogramme lower than that of March, fetching at 10,600 – 10,800 VND per kilogramme (VAT excluded) and is likely to fall even more.

The price of scrap steel went down by 20 – 25 USD per tonne to 255 – 265 USD per tonne while that of steel billets has declined by 20 – 25 USD per tonne since April 24 to about 390 – 400 USD per tonne.

Local producers continued to offer discounts and price guarantees to customers and suffer fierce competition from exported steels, further worsening the situation.

The association advised the domestic steel producers to help stablise the market by revoking price guarantees and reducing discounts. It also encouraged information exchange and cooperation between the producers to ensure a healthy business environment.-VNA