Steel consumption remains at low level

The statistics released by ministry of industry and trade showed that in February 2012, the total construction steel production output was posted at 370,000 tonnes, increasing by 30 percent against the previous month, but down 5 percent year-on-year.

The February consumption volume saw a month-on-month surge of 56 percent, but down 24 percent in comparison with the same period of 2011. Meanwhile, the Vietnam Steel Association (VSA) revealed that the steel consumption volume in February was reported at 360,000 tonnes, declining by 400,000-420,000 tonnes against the average volume because most of the key construction projects have been slowdown, delayed due to difficulty in the national economy.

In the coming months, VSA still predicted that the steel consumption would remain at low level because the government would continue realising the targeted goals to curb inflation, stabilise macro-economic sectors. In addition, the production costs may increase due to fluctuations in the input factors (electricity, petroleum, coal price). Therefore, the steel producers would have to enter a harsh competition with each other then.

 

Category: Business