Vietnam’s steel production to reach 30m tons in ’24

Vietnam’s finished steel production is expected to reach 30 million tons in 2024, a seven per cent rise from 2023, the Ministry of Industry and Trade (MoIT) said. However, the industry is encountering challenges that may hinder its expansion.

The expected recovery is uncertain due to oversupply, rising imports, and global market instability in the domestic steel market. Local producers are facing intense price competition from imported steel products, exacerbated by high international shipping costs and market volatility.

Despite these headwinds, industry experts see potential for a year-end recovery driven by the construction season. Additionally, the MoIT’s investigation into potential anti-dumping measures on imported steel products could level the playing field for domestic producers.

In the first seven months of the year, finished steel production climbed 9.4 per cent year-on-year to nearly 17 million tons. Coated and colour-coated steel led the growth with a 29.2 per cent surge, followed by construction steel at 14.6 per cent and hot-rolled coil (HRC) at 2.9 per cent. Finished steel consumption also rose 14.3 per cent to 16.75 million tons.

Steel exports increased 6.8 per cent to nearly 4.9 million tons. While cold-rolled coils (CRC) saw a 40.6 per cent surge, exports of steel pipes and HRC declined by 1.2 per cent and 0.8 per cent, respectively.

The Vietnam Steel Association (VSA) anticipates a positive market recovery in the latter part of the year driven by continued growth in the industrial production sector and the recent enactment of new real estate and land laws.

Attribution: Vietnam News Agency

Subediting: M. S. Salama