Domestic steel consumption decreases, exports increase

Contrary to domestic developments, steel export has a strong growth in both output and value.

Making reinforcement of foundation piles for construction of An Huu bridge belonging to the My Thuan bridge project on both sides of Tien Giang from public investment. Photo: VNA

VSA said that the output of construction steel produced in November reached more than 1 million tons, up 2.71% compared to October and up 5.6% over the same period in 2020, construction steel consumption reached more than 872,000 tons, down 26.11% over the previous month and down 31.2% over the same period in 2020.

In the first 11 months of 2021, construction steel production reached more than 11.3 million tons, up 3.9% over the same period in 2020. Construction steel consumption reached nearly 11 million tons, down 2.6% compared to the same period of 2020. same period in 2020.

According to the explanation of the VSA representative, the prolonged Covid-19 epidemic caused many construction works and projects to be temporarily postponed, especially in the southern region, although it was restarted, but there were still many difficulties. difficult, leading to a decrease in construction steel consumption by 2.6%; in which domestic consumption decreased by 10% over the same period in 2020. Specifically, in the first 11 months of 2021, sales growth of construction steel in the North decreased by 11.4%, the South decreased by 9.4%, exports and the Central region increased by 32% and 17.5%, respectively.

In contrast, exports of construction steel in the first 11 months of 2021 reached more than 2 million tons, up 55% over the same period in 2020. Favorable factors for export such as environmental policy, adjustment of export tax refund of the government. Government of China and recent price fluctuations of ore, Coke and scrap have affected the Southeast Asian steel market; including Vietnam.

With hot rolled coil products, in the first 11 months of 2021, hot rolled coil production reached more than 6.5 million tons, up 68.2% over the same period; hot rolled coil consumption reached more than 6.52 million tons, up 75.5% over the same period; in which exports reached more than 1.2 million tons, up 84% over the same period in 2020.

Recorded at Hoa Phat Group, in November, this group produced 765,000 tons of steel of all kinds. In the past month, Hoa Phat's export volume of construction steel and galvanized sheet of all kinds increased. Finished construction steel products recorded more than 271,000 tons; of which exports are more than 100,000 tons, 2.3 times higher than the same period last year. Hoa Phat steel sheet exported up to 55,000 tons/month for the first time, mainly coming from the increased demand for galvanized steel sheets from the US and European markets.

In 11 months, Hoa Phat Group achieved total sales of steel of all kinds reaching 8 million tons, up 33% over the same period. Construction steel is 3.5 million tons, up 15%; in which exports of finished construction steel reached 914,000 tons, up 90%. The output of hot rolled coil is more than 2.3 million tons.

According to VSA's assessment, the strong increase in market demand helps domestic iron and steel exports to face many advantages. Major domestic manufacturers such as Hoa Phat, Ton Hoa Sen or Nam Kim all achieved impressive export figures. Our country's iron and steel products are mainly exported to ASEAN, China, EU, and US markets.

VSA also said that by 2022, with the active participation of the government and sectors, at all levels, the Covid-19 epidemic situation will be better controlled, creating conditions for steel factories to operate stably. , ensuring the supply of steel for domestic and export markets. It is expected that in 2022, the situation of steel production and sales may slow down when there is a holiday for the Lunar New Year, the possibility of the Covid-19 epidemic developing difficult. It is expected that crude steel production will grow by 8-10% compared to 2021; production and consumption of finished steel products have corresponding growth compared to 2021.

However, to ensure a balance between supply and demand in 2022, VSA recommends that the state have policies to encourage investment, promote and protect domestic steel production with consistency and long-term stability; assume the prime responsibility for developing and soon promulgate the National Technical Regulations on steel products such as metal-coated corrugated iron and color-coated steel; At the same time guide the process, the participation of the parties (state agencies, associations and businesses).

In addition, state agencies support enterprises in applying trade remedies to protect domestic production, as well as respond to trade remedy lawsuits by countries in relation to other sectors. steel exports from Vietnam in order to minimize the damage to businesses.

TTXVN