Ministry data shows factories consume less steel in August

Ministry data shows factories consume less steel in August

The steel consumption of Vietnamese factories has remained low in the first eight months of 2014 and was mainly for buildings under construction, said the Ministry of Industry and Trade.

Figures from the Ministry showed that raw steel output in August was 280,500 tonnes, a nine-per cent increase over that of the previous month, while rolled steel output posted a 16 per cent year-on-year increase to 291,100 tonnes, and bar steel output was 294,600 tonnes.

In the first eight months of the year, raw steel output was estimated to be 1.9 million tonnes, a 0.01-per cent reduction compared with that of the same period last year. Rolled steel output was estimated at 2.3 million tonnes, a 23 per cent year-on-year increase, while bar steel output was 2.28 million.

In August, steel imports increased by 43 per cent in terms of quantity and 39 per cent in terms of value compared with that of the previous month. From January to August, steel imports increased by 14 per cent in terms of quantity and seven per cent in terms of value compared with that of the same period last year.

The Ministry attributed the low consumption to economic difficulties and the fall in construction demand among households during the rainy season.

It added that some steel factories in the north had to stop production because of low consumption and high inventories while others had to reduce their selling prices by supporting transport fees and increasing discounts, in order to compete with steel imports.

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