News » Breaking news
With CRC oversupply, some steel mills in Vietnam may close down
  • | | December 08, 2009 09:27 PM

Vietnam Steel Association (VSA) warned that due to the overproduction of CRC in Vietnam, domestic CRC mills may close down. Presently Vietnam’s CRC capacity surpassed 2mln ton, but the average consumption was only 1.1mln tons annually.

In October of 2009, POSCO’s CRC mill with annual capacity of 1.2mln tons in Vietnam is put into production, replaced PhuMy flat products manufacturer with 800,000 tons of capacity per year to be the largest CRC maker in Vietnam. Besides, ThingNhat flat products producers planned to start a CRC mill into production in the end of this year, with an annual capacity of 0.2mln tons , while another two CRC mills, Sunsco and Lotus had capacity of 180.000 tons totally. Currently all the CRC mills felt pressure of overcapacity. At the same time, Vietnam’s CRC imports increase constantly and the import from China, S.Koerea and Japan amounted to 600,000 tons in the first 10 months. At present, domestic HRC demand is sluggish and the inventory remains high.