Big steelmakers exploit market

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VietNam News English - 70 month(s) ago 11 readings

Big steelmakers exploit market

Large steel makers are trying to grab market share from small and medium players who are cutting down production due to the downturn in the industry.

Steel rods are bound into bundles by workers of the Viet Nam Germany Steel Pipe Co in Binh Xuyen Industrial Zone in the northern province of Vinh Phuc. Steel sales in the first quarter totalled a million tonnes, 12 per cent below a year earlier. — VNA/VNS Photo Tran Viet

Pomina Steel Company, a major construction-steel manufacturer with nearly 14 per cent of the market, hopes to increase sales in both volume and value terms.

It did not specify how much it plans to sell this year, merely announcing that it would increase sales by 20 per cent to VND14.4 trillion (US$685.7 million).

It hopes to achieve this by setting up more sales outlets in the north.

Dau Tu (Vietnam Investment Review) newspaper quoted a company spokesperson as saying that though it only began selling in that region last year, it already has a 5 per cent market share.

Other major steel firms with strong brands and advanced technologies are also planning to expand.

The Hoa Sen Group was busy trying to expand market share last year though the industry was struggling, managing to increase its share of the sheet-metal market by 3.5 per cent to 37 per cent.

It is the largest company in the segment.

Overall, it has increased its market share to 13.9 per cent last quarter from 13.3 per cent at the end of last year.

The Viet Nam Steel Association reported that steel sales in the first quarter were a million tonnes, or 12 per cent lower than a year earlier.

Pham Chi Cuong, head of the association, said the industry's growth target of 4 per cent this year could be hard to achieve if sales do not pick up soon. — VNS

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