Steel inventories fall sharply
Steel inventories fall sharply
Inventories of finished steel products plunged by 16.6 per cent in January, compared to the same month a year ago, the Viet Nam Steel Association has announced.
The steel industry has set a modest growth target of 2-3 per cent this year in the face of uncertain economic situations domestically and internationally, said association chairman Pham Chi Cuong.
The oversupply of some products, including steel pipe, galvanised steel, construction steel, and cold-rolled steel, remained the leading challenge facing the industry, he added, noting that mounting inventories had forced many steelmakers to cut production.
As Viet Nam's WTO commitments continued to take effect, the lowering of tariffs was also putting enormous pressure on domestic steelmakers who were now forced to compete with imported products, especially from China, Cuong said.
Domestic steelmakers were also facing greater difficulties penetrating foreign markets in which technical barriers and threats of anti-dumping actions have discouraged exports of Vietnamese steel products. Last year, cold-rolled steel from Viet Nam faced anti-dumping lawsuits in both Thailand and Indonesia, while welded steel pipe was challenged in the US. Other markets have already issued warnings against galvanised steel and tinted steel from Viet Nam
The nation's steel production in January totalled 360,000 tonnes, a decline of 36,000 tonnes compared with December but an increased of 75,000 tonnes over January 2012, the association said. Domestic steel consumption remained stable from December but was 127,000 tonnes higher than last year.
The nation also imported 600,000 tonnes of steel in January, representing a month-on-month decrease of 1 per cent but a year-on-year rise of 19 per cent.
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