According to a report from the Vietnam Steel Association (VSA), in August 2021, the consumption of many steel products decreased due to difficulties from COVID-19, construction activities were delayed.
Specifically, finished steel production reached 2.35 million, down 1.9% compared to July 2021, equivalent to the output level of the same period in 2020; steel consumption of all kinds reached 1.9 million tons, down 9.4% over the previous month and 8% respectively compared to August 2020.
In a detailed report on each product, VSA said that construction steel production and consumption in August 2021 had the lowest monthly output in the last 5 years. Construction steel production in August 2021 reached nearly 714,000 tons, down more than 2% compared to July 2021 and down 8.1% over the same period in 2020. Consumption reached more than 559,000 tons, a sharp decrease of 29, 31% over the previous month and down 39.6% over the same period in 2020.
Cold rolled steel production in August reached more than 383,000 tons, down 12.73% compared to July 2021 and down 12.9% over the same period in 2020; consumption reached nearly 164,000 tons, down 8.35% over the previous month and down 10% over the same period in 2020…
VSA said that construction steel production and consumption in August 2021 has almost the lowest monthly output in the last 5 years.
“Hanoi, Ho Chi Minh City, Da Nang and many southern provinces implement social distancing according to Directive 16 or at the highest level, causing construction activities to stall, delay or stop; the chain Raw material supply is at risk of being interrupted. In addition, sea freight rates are high and logistic activities are congested; the organization and maintenance of production 3 on-site of enterprises incurs many costs”, VSA said. explains the reason for the lowest consumption of construction steel in August in the past 5 years.
According to VSA, in the North, the weather entered the rainy season, making construction activities unfavorable. These factors have caused the situation of steel production and consumption in August 2021 of VSA member enterprises to decrease.
Although domestic steel consumption in August dropped sharply due to objective impacts, in the first 8 months of 2021, Vietnam’s steel consumption continued to grow, mainly coming from exports, the association said. Vietnam Steel said.
Accumulated in 8 months, production and consumption of steel products still increased quite well due to inheriting good business results of the first months of 2021. Specifically, steel production of all kinds reached more than 20.6 million tons, an increase. 29.2% over the same period in 2020; steel consumption of all kinds reached more than 18 million tons, up 25.1% over the same period last year; in which, steel exports of all kinds reached more than 4.7 million tons, up 74.1% over the same period in 2020.
According to the Vietnam Steel Association, the domestic steel price is stable due to low domestic demand, at an average of about 16,200-16,500 VND/kg depending on the type of product and each specific enterprise.
However, at the end of the year, consumption will be more promising, some provinces and cities will relax the distance after controlling the COVID-19 epidemic, gradually stabilizing production and business activities in the new situation.
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