Inventory of 300,000 tons, steel trade deficit remains high

Steel inventory is about 300,000 tons, steel trade deficit by the end of April is estimated at about 2 billion USD.

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According to the Ministry of Industry and Trade, the industry's production situation in April has changed, after many months of slow production due to the frozen real estate market.

In April alone, crude iron and steel output is estimated at 264,200 tons, down 1.5% compared to April 2012. In the first 4 months, it is estimated at 907,500 tons, down 11.5% compared to the same period; rolled steel is estimated at 234,800 tons, up 23.9% compared to April 2012. In the first 4 months, it is estimated at 848,600 tons, up 21.7% compared to the same period; steel bars and angle steel are estimated at 320,000 tons, up 17.5% compared to April 2012. In the first 4 months, it is estimated at 1.1 million tons, up 9.3% compared to the same period. Steel prices at steel manufacturing and trading factories are relatively stable, with coil steel at around 14,400 - 14,600 VND/kg and plate steel at 13,500 - 13,800 VND/kg.

Regarding the amount of steel in stock, the factories have adjusted so that it is currently around 300,000 tons (the highest level in 2012 was over 450,000 tons). For steel billets to prepare for production, it is still maintained at 450,000 tons and is enough to supply the market in the second quarter of 2013.

However, according to the Vietnam Steel Association (VSA), although domestic steel inventories are still high, the amount of imported steel has increased slightly. The steel trade deficit is still quite tense when it is estimated that there were more than 2 billion USD worth of imported steel and raw materials up to the end of April 2013, while exports were only about 500 million USD.

In particular, the current situation of importing domestically produced products due to low prices has made domestic production more difficult. On the other hand, the upcoming dry season will make production at steel factories more difficult, seriously affecting workers' jobs. Therefore, in addition to adjusting import management policies, businesses also need to make efforts to innovate technology and save costs to further improve competitiveness to overcome the current difficult period./.

According to (vov.vn) - LT