Steel consumption increased by 3%

According to the Vietnam Steel Association (VSA), in the first 7 months of 2013, iron and steel production reached 2,628,135 tons and consumption reached 2,667,362 tons. If plus August, production is estimated at 365,000 tons, 355,000 consumption, steel consumption in the first 8 months is estimated at 3 million tons.
Mr. Nguyen Tien Nghi, Vice Chairman of VSA, said that the steel industry is currently very difficult, input increases, outputs cannot increase due to poor consumption. Therefore, VSA encourages enterprises to export and find new markets to reduce excess steel pressure in the country.
In addition, due to difficulties, some businesses are tending to sell below cost price, causing many complicated problems but it is likely that in September steel enterprises will have to raise prices, if they do not increase prices, they cannot stay. OK.
Nghi forecast, this year steel consumption will reach about 5 million tons, while the capacity of about 7.4 to 7.5 million tons. Therefore, the State has mechanisms and policies to encourage output to increase consumption for steel enterprises.
Regarding royalties, Mr. Nghi proposed that if the State continues to increase royalties on iron and nickel ores from 10% to 15%, production costs will increase, while inventories will be high. so the selling price cannot be increased, inevitably pushing steel enterprises into more difficult situations, it is difficult to compete with imported steel products.
In addition, the ministries and branches should soon take measures to prevent alloy steel containing the element Bo. Because the Chinese Bo-alloyed steel products have massively entered the Vietnamese market, which has adversely affected the business results of domestic construction steel producers, especially in the current context. Now the installation capacity of construction steel has been 2 times higher than the actual demand.
The import of alloyed steel containing boron from China is in fact a commercial fraud, causing a huge loss of hundreds of billions of dong to the State budget, while the budget revenue plummeted compared to the plan in the first 6 months. this year.

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