Hot rolled coil HRC steel sales also fell by 19% to 521,767 tons in May, according to data from the Vietnam Steel Association. The decline for the third consecutive month was particularly pronounced amid weak market conditions.
In line with the decline in hot rolled steel exports, average hot rolled coil prices fell to $551 per ton, down 6% y-o-y.
On the production side, hot rolled coil production in Vietnam increased to 577,973 tons in May and inventories rose by 56,206 tons.
Hot rolled coil consumption in Vietnam has fallen sharply in recent months, mainly due to the slow recovery in the real estate sector and the incomplete recovery of international economies. In addition, rising steel imports from China are adding to the pressure on the sector.
Nghiem Xuan Da, President of the Vietnam Steel Association and General Director of VNSteel, said that the sector's recovery is uncertain and businesses are still struggling with Chinese steel-related pressures and supply shortages. He also emphasized that domestic steelmakers are looking for support from the government to take safeguard measures against imported steel.
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