14:07 | 14/01/2016 Industry
(VEN) - Domestic steel manufacturers encountered numerous difficulties in 2015 due to competition from imported products. However, optimistic signals from the real estate market led to a 22 percent increase in annual sales of domestic steel products.
Somestic steel businesses sold 15 million tonnes of products in 2015
Vietnam Steel Association Vice President Nguyen Van Sua said domestic steel businesses sold 15 million tonnes of products in 2015, a rise of about 22 percent compared with 2014. These included about 7.23 million tonnes of structural steel, up nearly 30 percent; 2.93 million tonnes of cold-rolled steel, up 12 percent; 1.54 million tonnes of steel pipes, up 26 percent; and 3.3 million tonnes of corrugated galvanized iron, up 16 percent.
The steel sector exported more than 2.5 million tonnes of steel products worth about US$1.9 billion in 2015, down 4.2 percent in volume and 14.3 percent in value compared with 2014.
Domestic steel businesses have faced high pressures of competition from imported products. Vietnam imported about 12 million tonnes of steel products worth US$7.2 billion in 2015, a rise of 61.6 percent in volume and 18 percent in value compared with 2014. Notably, imports from China accounted for 62 percent of the total import volume and 56 percent of the total import value.
Domestic steel products accounted for just over 50 percent of total sales in 2015, while imported products accounted for more than 40 percent. While steel exports declined, steel imports increased in both volume and value. These results added dark colors to the panorama of the Vietnamese steel market in 2015.
The sales of domestic steel products are predicted to decrease sharply in 2016 and equal just about 15 percent of 2015’s result. Sua explained that the government applied many policies to stimulate the demand for construction in 2015 - the final year of the 2010-2015 socioeconomic development plan, bringing about increases in the demand for steel products. In 2016, public investment in large construction projects will decrease, so the domestic demand for steel products will fall. Steel exports are also forecast to decrease due to the pressures from anti-dumping lawsuits making it more difficult for Vietnamese steel to enter foreign markets.
In Sua’s opinion, anti-dumping lawsuits have increased because all countries want to protect domestic products. Therefore, Vietnamese steel businesses need to improve their knowledge of trade defense and grasp market information as quickly as possible.
The state needs to put in place appropriate mechanisms and policies as well as technical and trade barriers to prevent the import of substandard steel products into Vietnam.
Vietnam Steel Association Vice President Nguyen Van Sua:
To increase output, domestic steel businesses need to set clear roadmaps for investment in technology to ensure the quality of products while at the same time minimizing production costs to sell at competitive prices. They need to pay special attention to boosting domestic sales.