Production and consumption of steel products increased in the first nine months of 2020 (Photo: VNA) Hanoi (VNS/VNA) - The production andconsumption of building materials started resuming at the end of the thirdquarter this year as lots of construction works were speeding towardscompletion, however, local producers have been warned to watch the market toavoid a possible surplus.
TrinhKhoi Nguyen, Vice Chairmanof Vietnam Steel Association (VSA), spoke to more than 100 participantswho took part in a seminar that reviewed the steel market in the first ninemonths in Hanoi on October 26,
“Though theimpact of the COVID-19 pandemic made great difficulties for the production andconsumption of steel products, making many local producers not achieve the samegrowth rate as in previous years, there have also been good signs for theindustry in the period," he said.
"Thedrastic direction of Prime Minister NguyenXuan Phuc on speeding up thepublic investment projects will be actively implemented and make the localindustry rise,” Nguyen told VietnamNews.
“If thatworkload is accelerated at the end of the year, it will surely have a positiveimpact on the recovery and growth of the building materials industry, the steelindustry included," he added.
According tothe VSA, both production and consumption of steel products increased in thefirst nine months of the year when production reached 18.34 million tonnes,from 17.46 million tonnes from the last same term in 2019.
"Thereare huge Chinese-invested integrated carbon steel mills in ASEAN and Vietnamwhile the steel consumption potential in those countries is reported to beincreasing up to 7 percent in the region by 2021," Nguyensaid.
Local producerHoa Phat was reported to have exported more than 1million tonnes of steel billets to China so far this year.
Arepresentative from Hoa Phat Groupsaid the exports, of which more than 70 percent were to China, were thanks tothe firm’s effort and investment in technology and products and as well as theChinese policy to close low-tech steel producers in China.
He addedbuying steel from ASEAN was in some periods more effective andeconomical for Chinese buyers but also mentioned it was still a big challengefor the local industry to compete with Chinese firms when production resumed.
“Localproducers should diversify their products and enhance their export to ease thepressure in the local market and better compete with the world," he said.
A representativefrom Formosa Ha Tinh Steel Corporation,which also exported more than 1 million tonnes of steel products thisyear, said as Vietnam controlled the pandemic very well, theconstruction industry has resumed well and created opportunities for the steelindustry.
Togetherwith big steel producers, smaller firms also discussed difficulties for steelbillet prices at the seminar.
Nguyentold Vietnam News: “We will createmore seminars so producers can meet and discuss challenges and opportunities.In the long term, steel producers need to strengthen their market research, notonly in the country but also in the regional and international markets, foreach type of product to achieve the highest efficiency or they will lose out.”/.
VNA
