Vietnamese steelmakers reduce their production capacity

Shrinking the export market could lead to further production cuts at steel mills in Vietnam.

After Hoa Phat, one of Vietnam's major steelmakers, shut down four blast furnaces, another Vietnamese steelmaker, Formosa Ha Tinh Steel (FHS), plans to reduce its production capacity by 15%.

Considering closing another blast furnace in Dung Quat by the end of December, Hoa Phat will close the fifth of its seven blast furnaces.

It is said that Hoa Phat's further production cuts could have a big impact on the market.