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Vietnam's steel industry expects to recover: finished steel production in 2024 could reach 30 million tons, up 7% compared to 2023

According to forecasts of the Ministry of Industry and Trade, finished steel production in 2024 could reach 30 million tons, an increase of 7% compared to 2023. The Vietnam Steel Association (VSA) expects the industry to recover sustainably, because currently Currently, this recovery is uncertain for many reasons...


Production of crude steel and finished products increased


Data from the General Department of Customs shows that in July 2024, crude steel production reached more than 927,000 tons, up 2.6% over the previous month and up 17% over the same period in July 2023. Production of finished steel products of all kinds reached 2,527 million tons, up nearly 2.6% compared to June 2024 and up 5.2% over the same period in 2023.


Finished steel product sales reached more than 2.4 million tons, an increase of 4.2% compared to June 2024. Of which, exports of finished steel products of all kinds in July 2024 reached more than 681,000 tons, up 2.84% over the previous month but down 3.1% over the same period in 2023. Exports of construction steel products, cold rolled steel and galvanized steel increased compared to June 2024. While hot rolled steel (HRC) decreased by 42.1% and steel pipes decreased by 5.8%.


In the first 7 months of 2024, crude steel production reached more than 12.8 million tons, up 21% over the same period in 2023. Internal crude steel consumption and sales reached 12.4 million tons, up 17% over the same period in 2023. compared to the same period in 2023. Of which, exports will reach 1.58 million tons, up 45% over the same period in 2023.


Production of finished steel products of all kinds reached 16.9 million tons, an increase of 9.4%. Of which, metal-plated & color-coated corrugated steel production achieved the highest increase of 29.2%, construction steel 14.6% and HRC 2.9%. Cold-rolled steel coil and steel pipe production both recorded negative growth of 14.9% and 1.1%, respectively.


Finished steel sales reached 16.7 million tons, up 14.3% compared to the first 7 months of 2023. Finished steel exports in the first 7 months of 2024 reached 4.8 million tons, up 6.8% over the same period 2023. The growth rate of cold rolled coil (CRC) reached the highest rate of 40.6%, followed by metal-plated and color-coated steel sheets and construction steel. However, steel pipe exports decreased by 1.2% and HRC decreased slightly by 0.8% over the same period in 2023.



Regarding imports, in the first 6 months of 2024, imports of finished steel products of all kinds to Vietnam reached about 8.2 million tons with a value of more than 5.9 billion USD, an increase of 47.8% in volume and an increase of 25.1%. in value compared to the same period in 2023.


During the same period, Vietnam exported nearly 6.5 million tons of steel, up 20.5% over the same period last year. Export value reaches 4.7 billion USD, up 12.2% over the same period in 2023.


Recovery is uncertain


Many experts have also commented that, with the recovery of the residential real estate sector and the increase in the number of newly licensed projects, in the second half of 2024, domestic steel consumption is forecast to increase. recover. In addition, the revised and effective Land Law is expected to stimulate domestic steel consumption demand.


In particular, recently, the Ministry of Industry and Trade decided to investigate and apply anti-dumping measures on a number of galvanized steel products imported from China and Korea; Investigate and apply anti-dumping on hot rolled steel products originating from India and China...


If the investigation detects violations, tax imposition will help the steel industry compete more fairly in the coming years, and the recovery of corrugated iron and hot-rolled coil products of domestic enterprises will be better.


According to forecasts of the Ministry of Industry and Trade, finished steel production in 2024 may reach 30 million tons, an increase of 7% compared to 2023. However, the Vietnam Steel Association (VSA) believes that this recovery is not certain. Certainly, the oversupply of many domestic steel products and the increase in imported steel will make price competition for domestic finished steel products more fierce. The world market is unstable, international freight rates are increasing... also pose many potential risks for steel industry enterprises.


To truly be a fundamental economic sector and develop in the coming years, VSA said, the steel industry needs the State's support in issues related to trade defense with imported products, creating competition. more fair. At the same time, businesses themselves must improve product quality, competitiveness and the ability to defend themselves against investigations by importing countries.


VSA commented that with the bright spots of the socio-economic situation in July and the first 7 months of 2024, many fields in July achieved higher results than the previous month and 7 months were better than the same period in 2023. Industry maintains growth trend. Legal documents related to the real estate market, land law... taking effect can create momentum for the steel market to recover positively in the last months of 2024.

(doanhnghiepvn.vn)



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