Steel industry shows mettle

Steel industry shows mettle

The steel industry has shown signs of recovery as both inventory and imports decreased in the first four months of the year, according to the Viet Nam Steel Association (VSA).

The association said total steel imports in the period were 3.5 million tonnes worth US$2.2 billion. Members sold 1.5 million tonnes of building steel, 3.79 per cent less than last year, while steel pipe sales increased 20.2 per cent over the same period last year.

The industry had inventory of 310,000 tonnes of building steel and 460,000 tonnes of embryo – an amount that could meet the demand of steel factories this month.

The association said the decreasing inventory was because businesses had expanded their export market.

The General Customs Department added that imports were 11.6 per cent lower than the same period last year, but remained relatively higher than domestic consumption.

The VSA added the industry targeted a growth rate of 2 to 3 per cent this year. However, that depended on several factors including public investment and real estate market. Competition from imported steel has also created challenges.

The association asked management agencies to limit steel imports to support domestic producers.

vietnamnews