Steel consumption down 9.6 pct. in first seven months hinh anh 1Illustrative image (Photo: VNA)

Hanoi (VNA) - Consumption of steel in the first seven months of 2020 fell 9.6 percent year-on-year to 12.37 million tonnes, according to the Vietnam Steel Association (VSA).

Production output was down 6.9 percent year-on-year to 13.7 million tonnes.

Vietnam exported over 2.28 million tonnes during the period, a decline of 19.3 percent against the same period last year, VSA reported.

The global steel market is hoped to improve in the third quarter of the year but the ongoing COVID-19 pandemic presents myriad challenges.

Vietnam has met with difficulties in selling steel in international markets due to many countries remaining in lockdown mode and supply chains being interrupted.

The steel industry is also facing the effects of higher raw material prices, which put substantial pressure on the production and business activities as well as the profits of steel enterprises. 

The VSA said Vietnamese steel exporters need to be cautious about control over pre-engineered steel products exported to the US, as this item has been given early warning status in regard to trade defence measures.

Such measures will continue to be imposed by foreign markets on imported products, especially steel, it noted.

Apart from meeting requirements in standards, techniques, and origin, Vietnamese steel enterprises are also advised to pay more attention to trade defence provisions when exporting to markets such as the EU and the US./.