July 1, 2008

Steel Consumption Falls Sharply in Vietnam

Steel consumption falls sharply in Vietnam

HANOI, June 30 (Xinhua) -- About 250,000 tonnes of steel were sold in the Vietnamese domestic market in June, a drop of 60,000 tonnes from the previous month and the sharpest decrease in a single month so far, the Vietnam News Agency reported here Monday.

The reduction in demand was due to the halt of construction projects in the southern region of the country in the rainy season, as well as the government's tightened control over investment projects and bank loans, the agency quoted the Vietnam Steel Association as saying.

In addition, the rampant import of cheaper steel from China since the beginning of the year was another reason behind the lower demand for steel as the urgency to buy steel was not so high for the domestic consumers.

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