In the see saw world of supply and demand for Vietnam's rolled steel needs, the Vietnam Steel Association has warned that a surplus will hit the industry as a series of new plants come online.

According to VSA, supply may rise to 7 million tonnes in the next few months, exceeding the estimated demand of 4.6 million tonnes.

Two steel projects developed by Hoa Phat Steel Joint Stock Company and Chinese invested Thang Loi Company are expected to produce a combined 650,000 tonnes per year once completed by the end of October 2009.

Two other projects by Pomina Steel Joint Stock Company and Song Hong Steel Joint Stock Company have already come online with a combined annual capacity of 680,000 tonnes.

Over the past few years authorities have approved the construction of 23 new plants, each worth at least USD 500 million.

Mr Pham Chi Cuong chairman of VSA said that there have been exports to Cambodia, Laos, South Korea, Japan and the United States. But volume remains low at 50,000 to 70,000 tonnes per year due to fierce competition from Thai and Chinese manufacturers.

(Sourced from www.vietnewsonline.vn)