Most local steel producers are operating at 60% below capacity and many factories have been shut down due to shrinking demand, according to the Vietnam Steel Association (VSA).
VSA general secretary Dinh Huy Tam told the Daily that total steel sales in August reached only 350,000 tons compared to the monthly average of 500,000-600,000 tons.
Most steel manufacturers have scaled down or suspended production. The industry’s production is now far below capacity.
As local demand is dwindling, steel mills are seeking to boost exports. However, they are facing anti-dumping lawsuits by regional countries like Malaysia, Indonesia and Thailand.
According to VSA, the total volume of unsold steel had amounted to 320,000 tons by end-August, which is low as many enterprises have reduced production. Earlier, statistics of VSA showed that only 2.6 million tons of steel was consumed in the first seven months, down 10.6% year-on-year.
The Saigon Times Daily