Steel inventories falling
16-05-2012
 Steel pipes are produced at the factory of Thep Viet Corporation - Photo: Van Nam |
VSA vice chairman Nguyen Tien Nghi explained steel inventories are significantly falling because manufacturers are producing perfunctorily, with several of them having suspended production due to financial problems.
In addition, sales agents nationwide have begun to boost their reserves for sale in the coming time.
A senior source from Hung Tai Steel Plant in Bac Ninh told the Daily that his factory has halted production for over two months now because of financial distress.
Hung Tai Steel Company is undergoing necessary procedures for restructuring a bank debt of VND50 billion, so that the firm can take out more loans to recover production.
Regarding the Ministry of Finance’s decision to raise the import tax rate on stainless steel from 0% to 10% starting from June 11, Nghi said the local demand for stainless steel is surging but domestic production fails to address this need.
Import tax hike to 10% will definitely cause many troubles for local steel users in the coming time.
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