According to the Vietnam Steel Association (VSA), HRC sales dropped by 18% y-o-y to 499,000 tons, while exports plunged by over 70% to just 101,000 tons. Despite these setbacks, HRC production remained stable at 548,108 tons compared to the same period last year.
In the first 11 months of 2024, HRC sales fell by 2% y-o-y to 6 million tons, with exports declining by 31% to 2.2 million tons. Meanwhile, Chinese producers, grappling with weak domestic demand, increased their finished steel exports by 22.6% to 101.2 million tons, intensifying price competition in the global market.
Vietnam's export markets also presented challenges, with trade barriers complicating access. The European Union and India, accounting for 25% and 4% of Vietnam’s steel exports respectively, launched anti-dumping investigations against Vietnamese HRC products.
Despite these hurdles, domestic demand for HRC showed robust growth. Over the first 11 months, local HRC sales surged by 28% to 3.9 million tons. Galvanized steel production rose by 26% to 5.2 million tons, with sales up by 33%, while steel pipe production increased by 4% to 2.25 million tons.
Vietnam’s HRC production capacity, managed primarily by Formosa Ha Tinh Steel Corporation and Hoa Phat Group, remains limited to 8 million tons annually, struggling to meet rising demand.
Experts predict a revival in the steel sector driven by a recovering real estate market and major public investment projects. Vietnam Steel Corporation (VNSTEEL) also anticipates a more dynamic domestic market in the coming months.
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