At present, the export market is shirking and the construction industry continues to slump, which may drive more production cutting to Vietnam's major steel mills.
After Hoa Phat’s shutting down of its four blast furnaces, another leading steel mill in Vietnam, Formosa Ha Tinh Steel (FHS) is planning to cut down 15% production capacity.
On the other side, Hoa Phat is also considering closing another blast furnace in Dung Quat at the end of December, which will be the fifth shutting down of blast furnaces among its total of seven.
According to the reports of local trading companies, Hoa Phat’s further production cuts may cause a big effect on the market; however, most coil centers are not intended to refill stocks for the current poor demand.