A recent report from the Vietnam Steel Association (VSA) states that Vietnam ’s steel output is expected to increase slightly this year, up about 6% -8% year-on-year.

The association said that the global steel market has slowed last year and it is expected that steel consumption will not improve in the first quarter of this year.

Vietnam's crude steel output in 2020 is estimated to be close to 18 million tons, of which hot-rolled output is about 17.1 million tons.

It is expected that Vietnam will continue to import steelmaking raw materials such as iron ore (nearly 17 million tons) and scrap steel (about 5 million tons) this year.

Globally next year, the growth rate of steel capacity may exceed the growth rate of demand, leading to shrinking exports and profits.

The Vietnam Iron and Steel Association said that a large number of proposed long-flow steel-making projects in the ASEAN region will cause serious oversupply in the region, and it is expected that the local consumer market will take about 20 years to fully digest these capacities.

Due to increasing domestic supply and competition from imported resources, as well as tightening credit in the domestic real estate industry and delaying construction projects, Vietnam's domestic steel industry will continue to face numerous challenges.

In December last year, Vietnam ’s crude steel production (sale) volume was close to 1.3 million tons, an increase of 3.2% from November, and a 1.1% increase year-on-year in December 2018; crude steel consumption reached more than 1.4 million tons, an increase from November. 9.4%, an increase of 13.4% over the same period in 2018; the output of finished steel was nearly 2.3 million tons, an increase of 11.9% over the same period in 2018; the sales of finished steel products exceeded 2 million tons, an increase of 10.8% year-on-year; it is particularly noteworthy that in December The export volume of steel reached about 360,000 tons, a decrease of 9% compared with the same period in 2018.

A report from the Vietnam Iron and Steel Association stated that as of the end of December last year, the price of raw materials for iron and steel production such as iron ore rose by $ 3-5 / ton. Among them, scrap prices have increased significantly by $ 15-20 / ton compared with early November.

At present, the average domestic selling price of steel in Vietnam is 115-1,800 VND / kg, the specific price depends on the specific product variety and the type of enterprise.