Monday, July 18, 2011

Vietnamese steelmakers scale back production as consumption falls

Monday, 18 Jul 2011
Sourced from Vietnam News

Vietnam News reported that the domestic steel industry is cutting back on production in a big way as it faces unsold stockpiles and struggles to increase exports because it is not competitive enough. Its problems are compounded by increasing imports of cheaper steel products.

The construction season is nearing its peak, but instead of increasing capacity, steel factories nation wide are scaling back production, leading to fiercer competition.

The Pomina Steel Mill is among the companies which have been functioning at 50% of its production capacity for a few months due to low demand.

The Viet Nam Steel Corporation (VNSteel) is facing a similar situation with sales down 50% in the last few months, forcing it to decrease production and prevent excessive stockpiles. Smaller companies in the domestic market have also been experiencing dull business.

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