In the first half of 2024, Vietnam's steel sector experienced a strong recovery, with exports totaling 6.49 million tons, generating revenues of around USD 4.78 billion. The US was the largest market, accounting for 14,5% of export volume and 16.5% of export value, followed by Italy and Cambodia. The sector is poised for further growth in the second half of 2024 and the period 2025-2027, thanks to competitive production costs and consistent product quality.
Vietnam's construction sector reached a multi-year high of 7,34%, but the recovery in the steel sector has been volatile, and domestic demand is still not fully stabilized.
In June 2024, Vietnam's crude steel production declined slightly on a monthly basis, but recorded a significant y-o-y increase. Finished steel production and sales followed a similar trend, with strong growth in construction steel, HRC, galvanized steel, and steel pipes, while cold rolled coil (CRC) production declined.
In the first six months of 2024, finished steel production increased by 10,1% y-o-y, while sales and exports rose by 14.4% and 8.6%, respectively. Vietnam also saw a sharp rise in steel imports in May, with a significant increase in import volume and value in the first five months of 2024.
In the future, Vietnam's steel industry is expected to benefit from growing global demand. The country's finished steel production is expected to reach 30 million tons in 2024, up 7% from last year. The World Steel Association forecasts a slight growth in demand for 2024 and 2025, and Vietnam is well positioned to benefit from this, supported by competitive production costs and strong product quality. Favorable trade policies in the US and EU are also likely to boost Vietnam's export potential. With Chinese steel facing higher tariffs in the US, Vietnam could become a more attractive supplier and further strengthen its market position.
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