Vietnam steel industry only meets 40% of domestic steel demand
- Posted by: Nguyet Le
- Category: Newsletter, Steel
According to the Ministry of Industry and Trade, Vietnam steel industry grew significantly in 2016. However, 40% of domestic steel demand has been satisfied.
According to the Ministry of Industry and Trade, iron and steel production in 2016 grew significantly, but only satisfied about 40% of the domestic steel demand. This industry continues to record large trade deficit.
In 2016, the production output of crude steel reached 5,154,300 tons, a rise by 20.5% in comparison with 2015; the production output of rolled steel reached 5,351,500 tons, an increase of 26.8% in comparison with 2015; the production output of steel bars and angle steel bars reached 4,702,900 tons, an increase by 9.9% in comparison with 2015.
The Ministry of Industry and Trade assessed that, with current production capacity, Vietnam steel industry could 100% meet the demand of domestic steel billets, construction steel and cold-rolled steel (about 7-8 million tons/ year). However, Vietnam enterprises have not been able to manufacture hot-rolled steel sheet – the essential input material to produce cold-rolled steel, galvanized steel and steel pipe. Moreover, hot-rolled steel sheet is vital to shipbuilding and mechanical engineering. Although Vietnam is in great demand of hot-rolled steel sheet products (about 10 million tons/ years), they have to be imported from other countries.
With this situation, in 2017, the Ministry of Industry and Trade plans to produce 5,590,900 tons of crude steel, an increase by 16.6% as compared to 2016; to produce 5,840,300 tons of rolled steel a rise by 18% as compared to 2016.
To achieve the above goals, the Ministry of Industry and Trade is going to apply trade defense measures to ensure fair competition with import products. The Ministry of Industry and Trade will closely monitor the impact of these measures to domestic production and consumption in order to make timely adjustments, if necessary. The Ministry will ensure reasonable support for the development of Vietnam steel industry in the long term.
At the same time, the Ministry of Industry and Trade suggested that steel companies continue to renew technology, save costs to further improve competitive ability in order to overcome current difficulties. Enterprises need to closely monitor market developments and make flexible plans for each month and quarter; focus on managing output products through the construction of the distribution system and brand promotion strengthening.
Source: According to Xuân Thân/ VOV