Domestic steel producers are concerned over the influx of Chinese steel products, which will continue to be distributed throughout the country once the COVID-19 virus is brought under control, noting that steel sales plunged by 35%-40% in the first two months of the year, according to the Vietnam Steel Association.

Steel is produced at a factory owned by Hoa Phat Group. Local steel firms are concerned
about their high inventories and a possible influx of Chinese products once the spread of
the Covid-19 virus is brought under control (PHOTO: VNA)

In a report on the impact of COVID-19 on the local steel sector, sent to the relevant ministries and agencies, VSA Chairman Nghiem Xuan Da said the local market has been gloomy, with stagnant production and poor sales, as multiple construction projects have been suspended or had their deadlines extended, Tuoi Tre Online newspaper reported.

Enterprises have reduced their selling prices, but local consumption remains low. Meanwhile, steel producers still have to pay interest for bank loans, as well as storage and maintenance costs.

Some steel factories must reduce their capacities or suspended operations, due to the lack of laborers and input materials.

Once the disease is under control, Chinese products may flood the local market and local firms would face fierce competition, Da noted.