Vietnamese steelmakers are in need of state support to minimize damage caused by the outbreak of new coronavirus (COVID-19), which could cause a pandemic when dozens of countries report new infections. .
Vietnam Steel Association Vice President Trinh Khoi Nguyen said that the virus outbreak, started in China, has caused damage to the industry in many ways.
Nguyen said demand for Vietnam’s steel has plummeted as construction projects have been stopped and rigid measures have been taken by countries to monitor the flow of goods.
According to VSA, steel consumption across the country has decreased by 35% and exports have decreased by 20%. Other steel-related products also reported a 30-40% reduction in demand.
For example, Thai Nguyen Iron and Steel Company (TISCO) said its sales dropped sharply to 14,000 tons (just over 23% of the sales target in February). The Group said that even in the best case, it will only reach 75% of the quarterly target.
The steelmaker says it is in the process of reviewing inventories and negotiating with suppliers and buyers to ensure continued production.
On the supply side, steelmakers have felt the effects of the material shortage as major suppliers including China, Japan and South Korea all struggled to cope with the virus outbreak with stop producing.
The Association has called on 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 stable supply of raw materials across borders.
VTMSteel is one of the places most affected by the outbreak because its factory is located close to the Vietnamese border and the company is heavily dependent on trade between the two countries for raw materials. As the company’s stockpiles fall, operations are likely to stop in March.
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