Cutting off the downward momentum, construction steel exports started to recover

According to the Vietnam Steel Association (VSA) in December 2022, construction steel production has recovered compared to the previous months. Specifically, construction steel production in December 2022 reached 884,340 tons, up 29.5% over the previous month but down 12% compared to December 2021.

Also in this month, sales reached more than 1 million tons, up 17.5% over the previous month and approximately the same period in 2021. In which, export of construction steel reached 123,316 tons, up 26.5% compared to the same period in 2021. December 2021.

For the whole year of 2022, construction steel production reached 12.1 million tons, down 2% compared to 2021. Sales of construction steel reached 12.2 million tons, up 3% compared to 2021, of which export reached 2.1 million tons, down 3%.

VSA said that factories with reduced business results due to competition on selling prices and market share, have now suspended the price reduction. This makes the market more stable than before, promotes consumption and gradually regenerates inventories.

Some moves to correct prices for coil/rebar or CB4, CB5/CB3 by mills show that the price increase and price structure by category are being carried out step by step.

However, traders limited their purchases, trading was worse, mainly aiming to recover debt at the end of the year. All factories are facing difficulties due to high inventories at high prices and facing large monthly losses.

According to data of Hoa Phat Group, the sales volume of construction steel of this enterprise in 2022 will reach 4.2 million tons, up 10% compared to 2021 and contributing 59% in the total steel output of all kinds. In which, construction steel exports contributed nearly 1.2 million tons.

In terms of market share, Hoa Phat Group continues to affirm its No. 1 position in Vietnam in terms of construction steel, accounting for 35% of the country's construction steel consumption.

Vietnambiz