Steel exports grow despite drop in domestic sales

09:00 | 04/12/2017 Trade

(VEN) - The steel sector is facing difficulties and challenges despite significant achievements.

steel exports grow despite drop in domestic sales

However, according to the Vietnam Steel Association, the country’s steel export prospects are positive, as China’s steel exports this year may decline due to strong domestic demand for construction, hydropower and transportation projects.

Chinese steelmakers have to consider and adjust exports in order to limit negative impacts on the entire Chinese steel sector. This is an opportunity for Vietnamese steelmakers to increase exports.

According to the Vietnam Steel Association, construction steel production in October reached 758,412 tonnes, down 9.35 percent compared to September 2017 and up 13.8 percent compared to the same month last year. Meanwhile, steel consumption reached 559,847 tonnes, a drop of 24 percent and 14 percent compared to the previous month and the same month last year, respectively. As of October 31, steel inventories rose 35 percent from the previous month to 783,495 tonnes.

The drop in steel consumption in October was attributed to growing inventories and adverse weather. To further promote consumption, steelmakers simultaneously dropped their selling prices in October, with a decrease of VND500-700 per kg in the north and VND400-600 per kg in the south.

Scrap steel prices also declined US$5 per tonne to US$320-325 per tonne in October, while steel billet prices dropped US$27 per tonne to US$500-505 per tonne.

Exports of all kinds of steel in the first nine months of the year reached more than four million tonnes, with total export turnover of nearly US$2.7 billion, an increase of 31.6 percent in volume and 50 percent in value compared to the same period last year. ASEAN member states remained Vietnam’s main export market, with 1.92 million tonnes, accounting for 58 percent of total steel exports.

The Hoa Phat Group has made great contributions to increasing steel exports in terms of volume and value.

Thu Ha