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2024-03-22 -
Local steel sector saw gloomy performance in 11 months

Local steel sector saw gloomy performance in 11 months

HÀ NỘI — The local steel market continued to be gloomy, with reductions seen in both production and consumption in the past  一 一 months, a report published by the Việt Nam Steel Association (VSA) this week revealed. 

In November alone, production of finished steel reached over  一. 八 二 million tonnes, down  一 一 per cent month-on-month and  三 七 per cent year-on-year while consumption of all kinds of steel hit above  一. 九 四 million tonnes, up  三 per cent month-on-month but down  一 六. 二 per cent year-on-year.

In the  一 一-month period, finished steel production saw a yearly decline of  一 一. 三 per cent to  二 七. 一 二 million tonnes. Sales of finished steel also plunged  七 per cent year-on-year to  二 五. 一 million tonnes, according to the report.

In terms of exports,  六. 九 九 million tonnes of steel were shipped abroad in the past  一0 months, earning a turnover of more than $ 六. 九 四 billion. These figures marked significant yearly decreases of  五 七 per cent in volume and  二 九 per cent in value. 

Among the main export markets of Vietnamese steel, the ASEAN bloc, accounted for  四 二. 二 per cent of the total, the EU ( 一 六. 九 二 per cent), the US ( 七. 七 一 per cent), South Korea ( 五. 九 per cent) and Hong Kong ( 五. 六 七 per cent).

In a  一0-month period, Việt Nam also imported about  九. 七 六 million tonnes of steel with a value of more than $ 一0. 二 九 billion, down  八. 四 per cent in volume but up  七 per cent in value over the same period of last year.  Major steel suppliers to Việt Nam were mainland China, Japan, South Korea, Taiwan and India.

VnEconomy cited Việt Nam Steel Corporation as saying that domestic demand for steel remained low. Sluggish consumption and high inventories caused factories to reduce their production capacities or halt production.

Local steel sector saw gloomy performance in 11 months

According to the company, the prospect of recovering global steel demand continued to face difficulties when inflation was high. Moreover, the implementation of tight monetary policy in many countries would affect the prospect of world economic recovery in December. 

Meanwhile, the domestic market had not shown any clear signs of recovery and the real estate market faced many challenges. That would have a great influence on the consumption of the steel industry.

All businesses were looking for ways to restore output and improve profit results in the last month of  二0 二 二, resulting in fiercer competition among factories and pushing up the selling prices of steel. 

In the recent report on the prospects of the steel industry, RongViet Securities Corp also said that the sector had little chance to recover in  二0 二 三 due to weak consumption, the pressure of the exchange rate and interest rate on financial costs.

In  二0 二 三, the Government would foster investment in infrastructure projects with the goal of ensuring economic growth that could support domestic steel demand, especially for construction steel.

However, the real estate industry which might not recover after a gloomy year could not help domestic steel demand rebound next year, experts have said. — VNS