Vietnam’s steel consumption increased by 9% in October

Vietnam's steel consumption reached nearly 2.74 million tons in October, increasing 9.4% from September and 9% y-o-y, according to the Vietnam Steel Association (VSA). This growth was driven by strong growth in demand, particularly for construction steel and industrial steel. Construction steel consumption increased sharply in October, reaching its highest level since March 2022.

Vietnam’s construction steel consumption increased by 11% y-o-y in the first ten months of 2024. This increase suggests that domestic demand is recovering slightly, despite steel prices rising five times in October. For example, Hoa Phat’s construction steel prices increased from VND 510,000 (about USD 21) per ton to VND 13.94 million (about USD 549).

According to a Securities VPBank report, the increase in steel demand continues thanks to strong demand in the construction and industrial sectors. In addition, low inventory levels and increased investment in infrastructure projects helped steel prices bottom. Vietnam’s steel industry is boosting domestic consumption by reducing competitive pressure with anti-dumping measures on color-coated steel from China and South Korea.

VSA expects steel demand to rise further in the rest of 2024 on government-backed reconstruction and recovery policies. A more buoyant construction steel market is expected in the last quarter of the year, especially as construction projects accelerate.

Vietnam’s steel output is expected to rise by 8% in 2025, with the main reason for this increase being the increased deployment of public investment in transportation infrastructure. The recovery in China's real estate market could boost steel demand and raise prices, which would benefit Vietnamese steelmakers.