The country's steel outlook has deteriorated further as the number of coronavirus cases has doubled in the past four days, the Vietnam Steel Association said.
The restrictions imposed by the government in response to the outbreak of the virus in the country have led to a significant slowdown in economic activity, they said. Domestic steel demand in the country is expected to decline by almost 35% in 2020, while the country's steel exports begin to decline by almost 20% from the previous year if the outbreak in the country continues to spread.
The limited financial resources of Vietnamese banks are being used to support the government's efforts to contain the spread of the virus to more people and places. Consequently, infrastructure projects have slowed down. Banks reportedly cut lines of credit for major industries, including metallurgy. Traders noted that small and medium-sized players in the industry were hit hardest.
Meanwhile, steel imports into the country are likely to remain muted until the end of March this year. Buyers are expected to return in April on the assumption that stocks may be down by then.
Vietnam Steel Association predicts 35% decline in demand
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Azovpromstal® 13 March 2020 г. 10:05 |
