Vietnam's steel industry expects a year of strong growth in 2024. According to a recently published report, leading steel companies in the industry have stated that they are planning significant growth compared to the low base recorded in 2023. However, these plans have not yet been fully realized as the domestic real estate market has still not fully recovered.
According to the report, there are three main driving forces for the steel industry to continue its recovery in the coming period:
Increase in Domestic Demand: Domestic demand is expected to increase thanks to the promotion of infrastructure construction and the gradual revival of civil construction projects.
Increase in Export Demand: The increase in demand from export channels will contribute to the growth of the sector.
Decline in Raw Material Prices: The decline in raw material prices and the recovery in steel prices will help improve profit margins.
The report points out that despite these growth opportunities, the industry still faces competitive risks from the Chinese steel market. In 2023, steel imports from China reached 5.6 billion US dollars, and this import volume increased by 63% compared to the previous year, reaching approximately 8.3 million tons. However, the average import price fell by 30% to approximately USD 682/ton.
Despite these competitive pressures, the Vietnam steel industry is expected to achieve a promising growth trend for 2024 with the increase in domestic and foreign demand and the decrease in raw material costs. However, China's influence on the market remains one of the biggest challenges facing the industry.
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