The steel industry in Vietnam is expected to have a positive outlook for 2024, with major companies like Hoa Phat and Hoa Sen projected to experience significant recoveries, while small businesses may face challenges in finding output due to the recovery of steel prices and demand from large contractors.
Although the demand for building steel rose by more than 26% in May compared to the previous month, steel prices decreased for the 10th month, and steelmakers expected the struggle to continue.
Lower steel prices and public investment disbursement are expected to provide growth momentum for the construction industry over the second half of 2022.
Several key construction materials have seen a sharp price hike during the first three months of 2022, putting significant pressure on property prices, according to the Vietnam Association of Construction Contractors (VACC).
Steel prices have hit a new high after a series of rapid increases from May through June 2021 when they increased by more than 50 percent compared to the beginning of the year.
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.
The Hoa Phat Group has announced that it had received approval from Australia’s Foreign Investment Review Board to purchase an iron ore mine in the country.
Soaring raw material prices coupled with delays in shipping due to the COVID-19 pandemic significantly pushed up steel prices recently, according to the Ministry of Industry and Trade.
Construction steel sales are predicted to recover in the remaining months of 2020 after a fall in the January-August period due to impacts from the COVID-19 pandemic, according to the Vietnam Steel Association (VSA).
The southern province of Ba Ria-Vung Tau will strive for a growth of 9.11 percent in industrial production in 2019, according to the provincial People’s Committee.
Domestic steel production exceeded 17 million tonnes in the first ten months of this year, growing 22.8 percent year on year, according to the Vietnam Steel Association (VSA).
Steel prices will remain stable on the domestic market this month but are expected to increase slightly soon, according to the Ministry of Industry and Trade.
Several steel products saw a surge in productivity in May. The bar and angle steel products showed the highest increase of 22.5 percent, following by rolled steel with 21 percent.
Shares of average-sized steel firms listed on the local market recovered, thanks to the expectation of positive business results from rising steel prices in the first quarter of 2016.
The cost of building houses is expected to increase due to the recent rise in steel prices, which will in turn likely cause a spike in home purchase prices.
