At the beginning of the year, the steel market was gloomy.

According to information from the Vietnam Steel Association (VSA), in January 2014, the amount of construction steel sold decreased sharply compared to the previous month by 36.49% and decreased by 41.78% compared to the same period.

In January 2014, due to slow consumption, companies produced only 319,975 tons, down 29.14% compared to the previous month, and down 5.26% compared to the same period last year. This figure shows that companies have self-quantified their production with appropriate inventory.

Due to the gloomy market at the beginning of the year, as of January 31, 2014, the amount of construction steel in stock at companies reached 436,748 tons, a figure quite high compared to the original plan. According to VSA, this figure ensures enough for the next month. The amount of billet in stock in December 2013, about 400,000 tons, is also enough to meet the raw material needs of domestic steel rolling mills.

While construction steel is difficult to sell, steel pipe consumption still maintains the same growth rate as in December 2013 at 68,045 tons, up 0.772% over the same period last year and as of January 31, 2014, inventory was 23,766 tons.

The Vietnam Steel Association forecasts that due to the impact of the long Lunar New Year holiday, not only January 2014 but also February will continue to face difficulties for the steel industry, with output even being worse than in January 2014. However, in March, the market is likely to recover as many projects are under construction. The steel industry hopes that the amount of construction steel sold on the market will be greater than in January and February 2014.

According to baocongthuong