Steel producers allay shortages

Rolled steel is processed by Thai Nguyen Iron and Steel Corporation, an affiliate of the Viet Nam Steel Corporation, which assured that there would be no steel shortages and prices would remain stable in the foreseeable future. — VNA/VNS Photo Ngoc Ha

HCM CITY — The Viet Nam Steel Corporation (Vnsteel) has assured that there will be no shortage of steel in the market and prices will remain stable in the coming time.

Vnsteel leaders said at a press conference held in HCM City last Friday that the entire country‘s production capacity of rolled steel for construction purposes was more than seven million tonnes a year including four million tonnes generated by the corporation.

This productivity was more than enough to meet the domestic market's demand which was estimated at five million tonnes per year, the corporation said.

According to the Viet Nam Steel Association (VSA), reserves with steel producers were still at a safe level, at about 200,000 tonnes of finished products and nearly 530,000 tonnes of steel ingots.

These volumes coupled with imported steel will satisfy customers'needs in coming months, the association said.

In anticipation of market fluctuations this year, Vnsteel, now responsible for providing up to 50 per cent of total construction steel to the market, is preparing plans to keep supply and prices stable.

The corporation has prepared enough material to meet production plans for the second quarter of the year, it said.

Sufficient reserves, increasing competition among 30 domestic producers, and steel import tariffs that will be reduced or removed this year under ASEAN Free Trade Agreement (AFTA) and World Trade Organisation (WTO) commitments would help ease steel prices in the domestic market, Vnsteel said.

At the event, Vnsteel representatives also explained reasons that made market steel prices increase sharply in March, saying that speculation was a major factor. — VNS