Domestic steel demand is expected to keep falling due to the property market slump and tightened monetary policy, economic downturn in many export markets and a rise in supply making the outlook for the industry in 2023 poor, analysts said.
The UK – Vietnam Free Trade Agreement (UKFTA) was providing significant opportunities for Vietnam to expand the export of steel and iron products in the UK.
Hoa Phat Group contributed nearly 7.4 trillion VND (315.97 million USD) to the State budget in the first half of 2022, rising 42% year on year and surpassing the entire 2020’s estimate, the conglomerate reported.
Over-reliance on input material imports, small production value and outdated technology were among the major weaknesses of Vietnam's steel industry, said a recent report by the Ministry of Industry and Trade.
Many insiders believe that 2022 will be a promising year for the steel industry when the pandemic is brought under control and construction demand rebounds strongly.
The Ministry of Industry and Trade (MoIT) has decided to maintain the anti-dumping measure imposed on some H-shaped steel products from Malaysia since April 2021.
The Ministry of Industry and Trade (MoIT) has denied rumours that it proposed the establishment of a State stabilisation fund to cope with the sudden increase in steel prices that has impacted many businesses.
Indonesia scrapped steel imports by 34 percent in 2020 compared to the previous year, while its production jumped by 30.25 percent from 8.89 million tonnes to 11.58 million tonnes, the Ministry of Industry reported.
The production and consumption of building materials started resuming at the end of the third quarter this year as lots of construction works were speeding towards completion, however, local producers have been warned to watch the market to avoid a possible surplus.
The implementation of many large projects after the social distancing period and disbursement of public investment for infrastructure until the end of this year are expected to support growth in construction steel consumption, according to Rong Viet Securities (VDSC).
Indonesian steelmakers are facing severe impacts caused by the COVID-19 pandemic on their business with the demand having decreased by 90 percent from the normal times.
Indonesian President Joko Widodo has instructed his cabinet members to increase the availability of raw materials for the steel and iron industry so as to support infrastructure development while slashing imports.
Hoa Phat Group exported more than 265,000 tonnes of construction steel in 2019, up 11.3 percent year on year, the multi-sectoral conglomerate reported.
The Vietnamese steel industry is expected to face difficulties this year due to an increase in production capacity, falling demand and protectionist measures by countries to reduce imports, according to experts.
The US’ imposition of duties of up to 456 percent on certain steel products shipped from Vietnam would not significantly harm the country’s steel industry, according to industry insiders.
Hoa Phat Group, a leading steel maker in Vietnam, shipped 191,600 tonnes of steel products aboard in the first nine months of 2019, rising 32 percent year on year and accounting for nearly 10 percent of its total sales.
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