Posted on 14 Aug 2012
Pham Chi Cuong, the Chairman of the Vietnam Steel Association (VSA) said that the country’s steel inventories at the end of June surged by 15% in comparison of that in early this year, hitting the new record high.
He pointed out that the Vietnam’s current monthly stocks of steel products were at 350,000 tons while the country’s steel consumption was only at 300,000 tons.
In the previous few year, the country’s monthly steel product inventories were at 250,000~300,000 tons while the sales volumes of steel products were at 400,000~450,000 tons.
In the past two months, some steel mills in Vietnam have been forced to postpone the production due to weak demand, according to Pham Chi Cuong.
Meanwhile, he added the Vietnamese steel industry might fail to raise output by 3%~4% this year since the country’s steel consumption and prices were declining over the past two months.
At the same time, he said that around 20% of the Vietnamese steel enterprises will face bankruptcy this year.
