Crude and finished steel production 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% over June 2024 and up 5.2% over the same period in 2023.

Finished steel sales reached more than 2.4 million tons, up 4.2% compared to June 2024. Of which, finished steel exports of all kinds in July 2024 reached more than 681,000 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. Meanwhile, 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. Domestic crude steel consumption and sales reached 12.4 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 16.9 million tons, up 9.4%. Of which, the production of metal-coated and color-coated steel achieved the highest growth rate of 29.2%, construction steel 14.6% and HRC 2.9%. Production of cold-rolled steel coil and steel pipes both recorded negative growth rates of 14.9% and 1.1%, respectively.

The Ministry of Industry and Trade forecasts that finished steel production in 2024 could reach 30 million tons, up 7% compared to 2023. However, the Vietnam Steel Association (VSA) said that this recovery is uncertain.

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 in 2023. The highest growth rate was cold rolled coil (CRC) at 40.6%, followed by galvanized and color-coated steel, 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 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 25.1% in value over the same period in 2023.

During the same period, Vietnam exported nearly 6.5 million tons of steel, up 20.5% year-on-year. Export value reached 4.7 billion USD, up 12.2% year-on-year.

Recovery 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, domestic steel consumption is forecast to recover in the second half of 2024. In addition, the revised Land Law coming into effect is expected to stimulate domestic steel consumption demand.

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

If the investigation discovers violations and taxes are imposed, it will help the steel industry compete more fairly in the coming years, and the recovery of domestic steel and hot-rolled coil products will be better.

According to the forecast of the Ministry of Industry and Trade, finished steel production in 2024 could reach 30 million tons, up 7% compared to 2023. However, the Vietnam Steel Association (VSA) said that this recovery is uncertain because 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, increasing international freight rates... also pose many risks for steel industry enterprises.

To truly become a fundamental economic sector and develop in the coming years, VSA said, the steel industry needs the State’s assistance in issues related to trade defense with imported products, creating fairer competition. At the same time, businesses themselves must improve product quality, competitiveness and self-defense 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 sectors in July achieved higher results than the previous month and 7 months better than the same period in 2023, industrial production maintained a 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.

Thu An