Hanoi (VNS/VNA) - Vietnamese steelmakers were in need of State supportto minimise the damage caused by the outbreak of the novel coronavirus disease (COVID-19),which could well reach a pandemic as dozens of countries reported newinfections, said industry leaders and experts.

The virus outbreak, which started in China, had hurt the country’s steelindustry in many ways, said vice chairman of the Vietnam Steel Association(VSA) Trinh Khoi Nguyen.

Nguyen said demand for Vietnamese steel had fallen sharply as constructionprojects were halted and rigid measures were taken by countries to monitor theflow of goods.

According to the VSA, steel consumption across the country had dropped by 35 percentand exports had fallen by 20 percent. Other steel-related products alsoreported a 30-40 percent drop in demand.

For example, the Thai Nguyen Iron and Steel Company (TISCO) said sales hadplummeted to 14,000 tonnes (just over 23 percent of its sales target forFebruary). The corporation said even in the best-case scenario, it would onlyreach 75 percent of its quarterly target.

The steelmaker said it’s in the process of reviewing stockpiles and negotiatingwith suppliers and buyers to ensure production continued.

On the supply side, steelmakers have been feeling the effect of a raw materialshortages as major suppliers including China, Japan and the Republic of Koreawere all struggling to cope with the virus outbreak with production grinding toa halt.

The association has urged the Government to come up with policies to supportthe industry, including cutting interest rates and extending credit lines. Atthe same time, actions must be taken to ensure a steady supply of raw materialsacross the border.

VTMSteel was among the hardest hit by the outbreak as its factory is locatedclose to the Vietnam-China border and the company heavily relies on tradebetween the two countries for raw materials. As the company’s stockpiles fell,operations would likely stop in March.

The Vietnam Steel Corporation (VNSTEEL) has been talking with customs andborder authorities to find ways to speed things up on both sides. Meanwhile,steelmakers must also start seeking other sources of raw materials, VNSTEELsaid.

Tran Tuan Anh, minister of industry and trade, said his officials had beenholding talks with their Chinese counterparts to find ways to help enterprisesresume production as soon as possible.

Truong Thanh Hoai, head of the ministry's department of industry, said theministry had made recommendations to the Government to reduce key industries’reliance, including the steel sector, on China and South Korea as major rawmaterial suppliers. Meanwhile, the department has been working alongside firmsto hold trade promotions to help Vietnamese products find new markets./.