Vietnam’s steel sector saw a high growth rate in the first nine months of the year. (Photo: moit.gov.vn)
Hanoi (VNA) – The
local steel sector saw a high growth rate in the first nine months of the year,
despite difficulties, said the Vietnam Steel Association (VSA).
The VSA’s data showed that
from January to September, the country’s steel output was 15.4 million tonnes,
posting a 24.2 percent year-on-year increase. Steel consumption also rose by
20.5 percent from the same period last year.
The steel output in
September alone reached 836,624 tonnes, increasing 19 percent from the
corresponding period last year and 18 percent from the previous month.
The steel consumption last
month dropped 6.5 percent from the previous month to 740,565 tonnes, but
represented a 16.5 percent year-on-year rise. Therefore, steel inventories in
September rose 28 percent from the previous month to 579,342 tonnes.
Prices of steel billet for
production fluctuated at 525-530 USD per tonne, reducing 15 percent from the
beginning of last month. In the third quarter of the year, the steel
billet price rose 90 USD per tonne in comparison with the second quarter.
However, the construction
steel price did not increase, remaining stable at 12.5 million VND (550USD) per
tonne in the north and 13.5 million VND (594 USD) per tonne in the south.
The average capacity of the
domestic steel sector has been at 70 percent to avoid high inventory.
Vietnamese steel producers
are still facing pressure from imported steel. In the first eight months of the
year, imported steel reached 13.5 million tonnes worth some 7 billion USD,
reducing 22 percent in terms of quantity but reporting a 3.8 percent increase
in terms of value, in comparison with the same period last year.
The decreasing import
amount was mostly seen at cold rolled steel coil, as Formosa Ha Tinh Steel
Plant has been able to produce the steel.
In addition, the trade
defence measures on some steel products of coated steel, alloyed steel and
steel bar have helped reduce imports.
Producers of construction
steel and others are still facing fierce competition from imported products to
maintain their market shares.
Local steel producers,
therefore, need to keep a close control on the quality of imported steel to
make the market healthy.
Many domestic steel
producers have been actively investing in modern technologies and expanding
markets to improve their products’ quality to attract foreign customers. -VNA