Steel market remains stagnant as building season starts
Steel sale is yet to recover on the local market, despite domestic steel
producers' efforts to boost consumption coinciding with the start of
the construction season, according to the Vietnam Steel Association
(VSA).
Steel sale is yet to recover on the local market, despite domestic steel
producers' efforts to boost consumption coinciding with the start of
the construction season, according to the Vietnam Steel Association
(VSA).
The association said construction steel sales in September declined 3.87 percent against August and 2.29 percent year-on-year to 353,792 tonnes.
Production in the same month also fell 9.46 percent from August and 7.43 percent against September 2012 to 347,780 tonnes.
However, in the first nine months of this year, the steel production reached 3.36 million tonnes, a marginal increase of 0.02 percent against the same period last year, while consumption rose 2.46 percent to 3.38 million tonnes.
The steel inventory reached 317,504 tonnes in the first nine months of this year, VSA figures showed, adding the inventory remained at a normal rate.
Producers had a steel ingot inventory of 520,000 tonnes, which was expected to meet production demand in the coming months.
Meanwhile, the selling price of construction steel in the north was reduced by 100,000-350,000 VND to 12.24-12.95 VND million per tonne in September, as producers sought to counter low demand, according to the domestic market management team under the Ministry of Industry and Trade.
But the domestic market still sits precariously at the start of the season, because increased electric prices have pushed up steel production costs, making it even more difficult for suppliers to remain competitive.
The association said the building season got off to a slow start in September, as many storms and floods hampered projects.
The team expected steel prices to remain stable, while production and consumption would also see little change in months to come.
The association also reported that Vietnam's steel imports in the first eight months of 2013 had surged 26.22 percent in volume and 11.1 percent in value to 4.4 billion USD.
More encouragingly, Vietnam's steel export volume jumped 23.81 over the same period to 1.4 million tonnes, with value rising 15.26 percent to 1.2 billion USD.
The surge in exports had helped reduce consumption pressure on local steel producers, the association said.-VNA
The association said construction steel sales in September declined 3.87 percent against August and 2.29 percent year-on-year to 353,792 tonnes.
Production in the same month also fell 9.46 percent from August and 7.43 percent against September 2012 to 347,780 tonnes.
However, in the first nine months of this year, the steel production reached 3.36 million tonnes, a marginal increase of 0.02 percent against the same period last year, while consumption rose 2.46 percent to 3.38 million tonnes.
The steel inventory reached 317,504 tonnes in the first nine months of this year, VSA figures showed, adding the inventory remained at a normal rate.
Producers had a steel ingot inventory of 520,000 tonnes, which was expected to meet production demand in the coming months.
Meanwhile, the selling price of construction steel in the north was reduced by 100,000-350,000 VND to 12.24-12.95 VND million per tonne in September, as producers sought to counter low demand, according to the domestic market management team under the Ministry of Industry and Trade.
But the domestic market still sits precariously at the start of the season, because increased electric prices have pushed up steel production costs, making it even more difficult for suppliers to remain competitive.
The association said the building season got off to a slow start in September, as many storms and floods hampered projects.
The team expected steel prices to remain stable, while production and consumption would also see little change in months to come.
The association also reported that Vietnam's steel imports in the first eight months of 2013 had surged 26.22 percent in volume and 11.1 percent in value to 4.4 billion USD.
More encouragingly, Vietnam's steel export volume jumped 23.81 over the same period to 1.4 million tonnes, with value rising 15.26 percent to 1.2 billion USD.
The surge in exports had helped reduce consumption pressure on local steel producers, the association said.-VNA
You should also see
Garment & textile sector tries to keep growth momentum
The Vietnamese garment and textile sector is carrying out various measures to bolster production and business activities amidst formidable challenges posed by falling demand, high inventory, and geopolitical instability in several countries, according to insiders.
See more
Business
Vietnam National Brand Week 2024 opens
The Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) opened the Vietnam National Brand Week 2024 in Hanoi on April 16.
Business
Government urged to probe gold traders to prevent possible market manipulation
The National Assembly (NA) Standing Committee has asked the Government and the Prime Minister to investigate gold trading firms to promptly address any violations in business activities and possible market manipulation, amid soaring domestic prices.
Business
Tra Vinh exports organic coconut flower nectar to Australia
The Tra Vinh Farm Co., Ltd (Sokfarm) in the Mekong Delta province of Tra Vinh has successfully exported its first shipment of organic coconut flower nectar products to Australia - the fifth main importer of the locality’s product.
Business
Real estate market thrives, entities ready to re-enter market
The real estate market has witnessed positive developments, with a slew of projects, including billion-dollar projects, being announced and called for investment in the first quarter of 2024.
Business
Central bank to resume gold bar bidding after 11 years
The State Bank of Vietnam (SBV) will resume gold bar bidding after 11 years, aiming to increase the supply of gold to the market, promptly and immediately settle the high difference in domestic and international gold prices, thus ensuring the gold market operates in a safe and stable, healthy, open, transparent and effective manner in accordance with the Prime Minister's direction.
