In order to solve the difficulties that make domestic steel consumption difficult, Vietnamese steel enterprises have had to find a way to boost exports.
The outbreak of the COVID-19 epidemic in many localities caused a decrease in the demand for construction, along with the preparation for the rainy season, making it difficult for domestic steel consumption.
The Vietnam Steel Association (VSA) said that in order to solve the above difficulties, enterprises in the industry had to find a way to boost exports.
A recent report of VSA said that steel production in July 2021 of all kinds reached nearly 2.4 million tons, down 6.48% compared to the previous month; steel consumption of all kinds reached more than 2.1 million tons, equivalent to June 2021 and up 7.4% over the same period in 2020; in which, steel exports of all kinds reached 658,207 tons, up 5.96% over the previous month, and up 55% over the same period in July 2020.
Ms. Trang Thu Ha, Chief of Office of VSA, said that due to the impact of the COVID-19 pandemic and seasonal weather factors, the production and sales situation of the steel industry faced many difficulties.
With the current outbreak of the epidemic in the southern provinces, it is expected that production and consumption in the last months of 2021 will be very difficult.
VSA’s representative also said that the increase in consumption volume was mainly due to the increase in steel export output of enterprises.
Specifically, according to a report from VSA, sales of construction steel in the first 7 months of 2021 increased by 6.4% over the same period in 2020; in which consumption in the domestic market increased by 3% and export by 25.4%.
Construction steel consumption in July will have many difficulties when entering the rainy season. Due to the impact of the COVID-19 epidemic, many constructions and civil works were temporarily postponed, leading to difficulties in the domestic steel consumption market, especially in the southern region.
Hot rolled coil production reached more than 590,000 tons, down slightly by 1.21% compared to June 2021 but increased by 85.4% over the same period in 2020; consumption reached 559,487 tons, down 6.75% over the previous month but up 82.7% over the same period in 2020.
With metal-plated and color-coated corrugated iron, in July 2021, consumption reached 428,084 tons, down 6.58% over the previous month, but up 18.8% over the same period in 2020; in which exports reached 300,404 tons, up 84.2% over the same period in 2020.
In this field, Hoa Sen and Nam Kim Group are leading in general steel consumption. In 7 months of 2021, Hoa Sen sold nearly 1.1 million tons, gaining 36.7% market share. Nam Kim consumed more than 498,000 tons, ranked second with 16.8% market share.
Hoa Phat’s galvanized sheet and steel pipe products also recorded a strong increase. The leader of Hoa Phat Steel Products Joint Stock Company said that the recent increase in export volume of steel pipes and galvanized steel was mainly due to the recovery in demand in the US and Europe after the pandemic.
With the situation of domestic steel product consumption continues to be difficult, enterprises in this industry are also looking to export to ensure production capacity.
Ms. Trang Thu Ha said that if in 2020, in the first 6-7 months, many countries are blocked at this time, completely closing the market, and the production chain is stalled, then Vietnam thanks to its good fight against the epidemic. There has been a strong development in domestic steel consumption. Strongly deployed construction projects and public investment projects have created a premise for the steel industry to develop.
However, with the opposite epidemic situation of this year, in the first months of the year, Vietnam maintained production and in fact in the first half of 2021, Vietnamese enterprises maintained production compared to other countries.
However, at the time of June-July, many provinces and cities implemented distance, even had to close many activities, which weakened domestic market demand.
“Therefore, we forecast that consumption data in the third quarter will also not be good. As for the fourth quarter, we have to continue to wait for the results of disease prevention and control,” Ha said.
The Vietnam Steel Association said that businesses in the industry are trying to produce to serve the domestic market and export.
Enterprises in the South faced difficulties due to epidemics, construction stagnation…so the recent growth was mainly from exports.
“Hopefully, with the efforts of Vietnam and other countries to control the epidemic, by the end of the year, both domestic consumption and steel exports will have better growth,” said Ms. Trang Thu Ha.
With the same view, Mr. Nguyen Van Sua, a steel industry expert, said that in order to maintain production and jobs for workers, many steel industry enterprises in particular and many industries have to find export directions. Because of the domestic market due to the impact of COVID-19, social distancing, transportation and construction were stopped.
Recently, Minister of Industry and Trade Nguyen Hong Dien issued Directive No. 10/CT-BCT dated August 23, 2021 on strengthening export and import management of a number of products to support production activities. and domestic consumption.
According to the directive, the Ministry of Industry and Trade requested the Vietnam Steel Association, the Vietnam Steel Corporation and enterprises producing and exporting iron and steel, iron ore to review and consider issues related to input materials. , reduce production costs to lower product costs, take measures to increase steel production capacity to meet the maximum domestic demand, limit the export of goods and products that are in demand. high./.
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