Production and consumption of construction steel fell sharply

Sales in October reached nearly 600,000 tons, down 14% compared to the same period last year and down 24% compared to the previous month. Inventory over 783,000 tons, up 35% over the previous month.

According to the Vietnam Steel Association (VSA), production and consumption of construction steel in October has decreased sharply compared to the previous month. Specifically, the production of construction steel production in the month reached over 758,000 tons, up 13.8% over the same period of 2016, but down 9.35% compared with September 2017.

 

In line with that, the steel sales in October reached nearly 600,000 tons, down 14% compared to the same period last year and down 24% compared to the previous month. Inventories to date are over 783,000 tonnes, up 35% from the end of September 2017.

According to Nguyen Van Sau, Vice Chairman of Vietnam Steel Association, since late September, the construction steel market showed many abnormal signs. For example, slow selling by distributors has reduced inventory in the past and partly due to the impact of heavy rains, the construction market is quiet.

Consumption is slow, causing businesses to simultaneously discount. Construction steel price in the North decreased 3 times with a total reduction of 500-700 VND / kg in October; In the south, it decreased from 400-600 VND / kg.

In addition, the price of steel reduced by the price of steel scrap on the market decreased $ 5 / ton from 320-330 dollars per ton to 320-325 dollars per ton; domestic steel price decreased from VND 7200 - 7,350 / kg to VND 7,000 - 7200 / kg; billet price decreased $ 27 / ton from $ 529-530 / ton to $ 500-505 / ton; Domestic billet price decreased from 11,800-12,000 VND / kg to 10,800-11,200 VND / kg.

 

Embryo prices drove traders to try to reduce inventories and buy only a limited number of types and sizes of steel needed to meet customer demand to reduce risk.

According to reports from the Association of Steel, domestic steel production in 10 months increased 22.8% over the same period in 2016, reaching more than 17 million tons. Steel sales in the country reached nearly 14.2 million tons, up 18.4% over the same period last year.

From the beginning of the year to the end of September 2017, imports of all kinds of steel reached more than 15 million tons, with total import turnover reached nearly $ 8 billion, down 13% in volume, but up 16% in value over the same period. 2016.

Although the general data on imports of steel products has decreased compared to the previous year, however, imports of some products in the country have produced a tendency to increase as CR coils, cold rolled sheets nearly 447,000 tonnes, up 59%; Welded steel pipe reached nearly 80,000 tons, up 111% over the same period.

Steel exports in the first 9 months of 2017 reached over 4 million tons, with total export turnover of $ 2.7 billion, up 31.6% in volume and 50% in value over the same period in 2016 ...

The import and export data of the steel industry show some positive effects of the application of trade remedies with some steel products such as galvanized steel, bars and coils and alloy steel. /.