Data from the Vietnam Steel Association shows that in July 2024, crude steel production reached 927,180 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 2.59% compared to June 2024 (production of all steel products recorded growth, except for hot-rolled coil HRC, down 5.43%); and up 5.2% compared to the same period in 2023 (production of construction steel and galvanized steel products maintained growth rates of 8.9 and 30.3%, respectively).

The remaining steel products are hot rolled steel (HRC), cold rolled coil (CRC) and steel pipes, down 5.1%, 11.7% and 5.6% respectively.

The annual output is expected to reach 30 million tons, why is the steel industry still worried? Photo: Hoa Phat

Finished steel sales reached 2.464 million tons, up 4.22% compared to June 2024 (increased evenly in all finished steel products) and up 13.1% compared to the same period last year (only HRC sales decreased by 9.3% and steel pipes decreased by 4.8%); of which finished steel exports of all kinds in July 2024 reached more than 681 thousand tons, up 2.84% compared to the previous month but down 3.1% compared to the same period in 2023.

Exports of construction steel, cold-rolled steel and galvanized steel increased compared to June 2024, while 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; domestic crude steel consumption and sales reached 12.41 million tons, up 17% over the same period in 2023. Of which, exports reached 1.58 million tons, up 45% over the same period in 2023.

Production of finished steel products of all kinds reached 16.959 million tons, up 9.4%. Of which, production of galvanized steel and color-coated steel reached the highest at 29.2%, construction steel at 14.6% and HRC at 2.9%; Production of cold-rolled steel coil and steel pipes both recorded negative growth of 14.9% and 1.1%.

Finished steel sales reached 16.75 million tons, up 14.3% compared to the first 7 months of 2023. Finished steel exports in the first 7 months of 2024 reached 4.895 million tons of steel, up 6.8% over the same period in 2023. The growth rate of CRC cold rolled coil reached the highest at 40.6%, followed by galvanized and color-coated steel and construction steel, but steel pipe exports decreased by 1.2% and HRC decreased slightly by 0.8% over the same period in 2023.

The Ministry of Industry and Trade forecasts that finished steel production in 2024 could reach 30 million tons, up 7% compared to 2023. However, this recovery is uncertain and steel enterprises are still facing many difficulties due to pressure from Chinese steel and oversupply.

The oversupply of many domestic steel products and the increase in imported steel will make the price competition of domestic finished steel products more fierce. The unstable world market and increasing international freight rates also pose many risks to steel enterprises.

According to data from the Vietnam Steel Association, in June 2024, Vietnam imported about 1.283 million tons of steel, down 17.04% compared to May 2024 but up 34.03% over the same period last year in terms of import volume. The import value reached more than 934 million USD, down 17.31% compared to the previous month but up 11.64% over the same period in 2023.

In the first 6 months of 2024, Vietnam imported about 8.225 million tons of finished steel products of all kinds with a value of more than 5.969 billion USD, an increase of 47.88% in volume and 25.15% in value over the same period in 2023.

Regarding exports, in June 2024, Vietnam exported about 988 thousand tons of steel, down 11.61% compared to May 2024 and down 1.83% compared to the same period last year in terms of export volume. The export value reached more than 738 million USD, down 7.41% compared to the previous month and down 9.29% compared to the same period in 2023.

In the first 6 months of 2024, Vietnam exported about 6.493 million tons of steel, an increase of 20.55% over the same period last year. The export value reached 4.777 billion USD, an increase of 12.23% over the same period in 2023.