return icon

VN steelmakers hit hard by virus outbreak as demand, prices spiral

Vietnamese steelmakers were in need of State support to minimise the damage caused by the outbreak of COVID-19, which could well reach a pandemic as dozens of countries reported new infections.

Steelmakers hit hard by virus outbreak as demand, prices spiral hinh anh 1

Workers at a steel mill in Que Vo Industrial Zone in the northern province of Bac Ninh



The virus outbreak, which started in China, had hurt the country’s steel industry in many ways, said vice chairman of the Vietnam Steel Association (VSA) Trinh Khoi Nguyen.

Nguyen said demand for Vietnamese steel had fallen sharply as construction projects were halted and rigid measures were taken by countries to monitor the flow of goods.

According to the VSA, steel consumption across the country had dropped by 35 percent and exports had fallen by 20 percent. Other steel-related products also reported a 30-40 percent drop in demand.

For example, the Thai Nguyen Iron and Steel Company (TISCO) said sales had plummeted to 14,000 tonnes (just over 23 percent of its sales target for February). The corporation said even in the best-case scenario, it would only reach 75 percent of its quarterly target.

The steelmaker said it’s in the process of reviewing stockpiles and negotiating with suppliers and buyers to ensure production continued.

On the supply side, steelmakers have been feeling the effect of a raw material shortages as major suppliers including China, Japan and the Republic of Korea were all struggling to cope with the virus outbreak with production grinding to a halt.

The association has urged the Government to come up with policies to support the industry, including cutting interest rates and extending credit lines. At the same time, actions must be taken to ensure a steady supply of raw materials across the border.

VTMSteel was among the hardest hit by the outbreak as its factory is located close to the Vietnam-China border and the company heavily relies on trade between the two countries for raw materials. As the company’s stockpiles fell, operations would likely stop in March.

The Vietnam Steel Corporation (VNSTEEL) has been talking with customs and border authorities to find ways to speed things up on both sides. Meanwhile, steelmakers must also start seeking other sources of raw materials, VNSTEEL said.

Tran Tuan Anh, minister of industry and trade, said his officials had been holding talks with their Chinese counterparts to find ways to help enterprises resume production as soon as possible.

Truong Thanh Hoai, head of the ministry's department of industry, said the ministry had made recommendations to the Government to reduce key industries’ reliance, including the steel sector, on China and South Korea as major raw material suppliers. Meanwhile, the department has been working alongside firms to hold trade promotions to help Vietnamese products find new markets./.VNS

Vietnam steel industry not likely to have the best of times in 2020

Vietnam steel industry not likely to have the best of times in 2020

The Vietnamese steel industry is expected to face difficulties this year due to an increase in production capacity, falling demand and protectionist measures by countries to reduce imports, according to experts.

VN steel sector faces troubles in 2019

VN steel sector faces troubles in 2019

The steel industry experienced many difficulties in 2019 due to stronger steel imports and reduced sales of locally made products at home and abroad.



More Vietnamese scientists returning to home country

More Vietnamese scientists decided to return to the country with a desire to devote themselves to their homeland’s growth.

Hoang to defend WBA belt in hometown next month

Truong Dinh Hoang announced the bout on his Facebook page on February 26, though the challenger has yet to be named.

Sea tourism and expectations for a 'made in Vietnam' fleet

The number of cruise tourists accounts for only 2-3% of the total number of international visitors to Vietnam.

Hanoi’s tourism sector rakes in over VND1 trillion during Tet holiday

The capital expects to welcome roughly 332,000 visitors, including 32,000 international guests, during the Lunar New Year holiday from January 21 to January 26, with total revenue anticipated to reach more than VND1 trillion.

Stone lion statues - Symbol of stone sculpture art of Ly Dynasty

According to Buddhism, lion is the embodiment of intellectual power, but with stars on the body, the stone lions of the Ba Tam pagoda-temple also have the meaning of carrying the moving sky.

Vietnam's retail market predicted to bustle in 2023

Although 2023 is forecast to see many difficulties, experts expect this is a recovery year of the retail sector after COVID-19 pandemic as there are many signs showing the return of investors and higher demands.

Vietnam's leather and footwear industry targets US$27 billion in 2023 exports

The leather and footwear industry is striving to reach US$27 billion in export turnover in 2023, an increase of about 10% compared to one year earlier amid shrinking major markets and falling demand.

Discovering artisans' skills in Thanh Ha ancient pottery village

If pottery villages now mainly use molds, artisans in the Thanh Ha ancient pottery village in Hoi An city, Quang Nam, have kept their traditional method of making pottery - hand made and wheel thrown.

Destinations across Vietnam report surges in holiday-maker numbers during Tet

Tourist attractions across Vietnam have lured large numbers of holiday-markers during the week-long Lunar New Year (Tet) festival from January 20-26.

EVFTA presents tremendous trade, investment advantages

Commitments outlined in the EVFTA on both trade and investment are expected to contribute to attracting European businesses and investors to expand their activities in Vietnam, further promoting trade and investment cooperation.

10 houses with special architecture in Vietnam

With bold ideas, architects can create houses that are both aesthetic and functional. Here are 10 interesting houses in Vietnam.

89 people killed in traffic accidents during seven-day Tet holiday

A total of 152 traffic accidents occurred nationwide, killing 89 people and injuring 111 others during the 2023 Tet Lunar New Year holiday from January 20-26, reported the Traffic Police Department.

End of Tet holiday marked by high traffic congestion around major cities

In a bid to avoid the congestion, many people opted to return on Wednesday afternoon or Thursday morning.

Water resources planning scheme for 2021-2030 announced

The Ministry of Natural Resources and Environment (MONRE) has announced a water resources planning scheme for the 2021-2030 period with a vision to 2050, which was approved by the Prime Minister in December 2022.

Vietnamese businesses could join global supply chains with sound strategies: experts

A survey conducted by the association showed 63% of Japanese enterprises said they would continue investing in operation expansion in the next 1-2 years, reflecting that investors have great expectations for Vietnam's economic growth.