( 06-06-2014 - 10:22 PM ) - Views: 1921

There are many steel enterprises in the state of clinical death, mainly the introduction of new units, not the brand. Despite the low price, do not buy one.

How do you assess the situation of the steel business today?
There are many steel enterprises in the state of clinical death, mainly the introduction of new units, not the brand. Despite the low price, do not buy one.
Now if allowed to deploy a new project, and no one dared to do because steel does not sell. In fact, there are now completed construction in 2012, but have not dared to go into production for fear of loss.
VSA is encouraging exporters of steel. However, this job is not easy for Vietnam's steel industry born late, competitiveness is not high. The problem is that we put the steel in any market, price is.
The export must be at least break-even to create jobs, reduce domestic pressures. Vietnam Steel prices can not compete with water for the capital structure of the domestic steel enterprises is built mainly from its own capital, capital market and debt securities; whereas, the capital of Vietnam enterprises are mostly borrowed, interest rates many times higher than the rate of water, so all poured into steel prices.
According to him, what is the cause?
The main reason is due to policies that cut public investment projects with budget cuts or prolonged consumption of steel goes up. In addition, the real estate market froze and caused the steel industry reeling here is the main output.
Large steel inventories are now at very high levels, exceeding permitted levels (usually between 230-250 thousand tons). Steel exports though increased compared to 2011 but not much, only about 300 thousand tons, not dwarfed with some water.
So what to do to remove difficulties for enterprises?
To consume the amount of current inventory of steel, the need to make policy revolves around the issue of steel output. To reduce losses, businesses have to cut costs to reduce prices, technological innovation to reduce production costs.
Public enterprises continue to apply obsolete technology, they must accept bankruptcy because it is the law. As I know, many steel companies did not disclose whether the bankruptcy but is now regarded as clinically dead.
 
According to VSA, some businesses are actively put into practice materials from hot-rolled steel were found to decrease oil consumption. Even there now instead of rolling oil should have switched to cheaper coal. The application of coal gasification has helped reduce the 100-150 thousand VND / ton of steel than oil.