VIETNAM'S STEEL PRODUCTION EXCEEDS DEMAND
[tintuc]
With decisive and effective directives from the Government to resolve difficulties for the real estate sector, the construction industry, and to push forward public investment projects, the steel market showed signs of recovery in the first five months of 2024.
The Vietnam Steel Association (VSA) forecasts that steel production and consumption in 2024 could reach 30 million tons, an increase of about 7% compared to 2023.
However, according to Mr. Nghiem Xuan Da, Chairman of VSA, this recovery is not yet certain and still carries many risks. Steel companies are currently facing many difficulties.
The reality of "supply exceeding demand" for many domestic steel products, along with the increase in imported steel, will make price competition for domestic finished steel products more intense.
Meanwhile, the export market is facing many instabilities, along with rising international freight costs, posing many risks for steel companies.
Mr. Nghiem Xuan Da also mentioned that the recent increase in exchange rates has pushed up production costs in the steel industry, as 85% of raw materials for steel production are imported. To address this issue, the VSA representative proposed solutions.
Additionally, VSA suggested having supportive policies for stable exchange rates to help businesses overcome difficulties. They also urged the Ministry of Industry and Trade to soon present a development strategy for the steel industry, which would provide investment direction for steel companies in the future.
With decisive and effective directives from the Government to resolve difficulties for the real estate sector, the construction industry, and to push forward public investment projects, the steel market showed signs of recovery in the first five months of 2024.
The Vietnam Steel Association (VSA) forecasts that steel production and consumption in 2024 could reach 30 million tons, an increase of about 7% compared to 2023.
However, according to Mr. Nghiem Xuan Da, Chairman of VSA, this recovery is not yet certain and still carries many risks. Steel companies are currently facing many difficulties.
The reality of "supply exceeding demand" for many domestic steel products, along with the increase in imported steel, will make price competition for domestic finished steel products more intense.
Meanwhile, the export market is facing many instabilities, along with rising international freight costs, posing many risks for steel companies.
Mr. Nghiem Xuan Da also mentioned that the recent increase in exchange rates has pushed up production costs in the steel industry, as 85% of raw materials for steel production are imported. To address this issue, the VSA representative proposed solutions.
Additionally, VSA suggested having supportive policies for stable exchange rates to help businesses overcome difficulties. They also urged the Ministry of Industry and Trade to soon present a development strategy for the steel industry, which would provide investment direction for steel companies in the future.
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