Steel market may recover by the end of this year

In the long term, according to VSA, Vietnam's steel demand will continue to grow from 240kg per capita to 290kg per capita in 2030. Steel demand will be concentrated on alloys or high-quality steel.

Hanoi — Vietnam's steel market is likely to recover in the third and fourth quarters of this year thanks to augmented efforts to disburse public investment and credit packages for social housing projects, said Doan Danh Tuan, deputy chairman of Vietnam Steel Association (VSA).

Vietnam's economic situation, with more positive signs of development, is also expected to support the growth of the steel market, Tuan said.

He thinks 2023 will be a year with many difficulties and challenges for the industrial sector, but Vietnam's economy is assessed to have more development potential. 

Its GDP growth is expected to reach about 6.5 percent, while global economic growth is forecast at only about 1.5 percent, and Southeast Asian countries have an average growth rate of about 5 per cent.

The National Assembly has approved an economic recovery support package worth VNĐ350 trillion for 2022-23, of which about VNĐ114 trillion is for infrastructure development, focusing on key projects such as the North-South expressway, Long Thành airport, and large logistics ports. 

In addition, in February, the Government approved a credit package of VNĐ120 trillion to develop social housing projects. These factors will lead to strong growth in steel consumption in the third and fourth quarters of this year.

In the long term, according to VSA, Vietnam's steel demand will continue to grow from 240kg per capita to 290kg per capita in 2030. Steel demand will be concentrated on alloys or high-quality steel.

VSA said crude steel output in the first two months of the year fell 22 percent year-on-year to 2.9 million tonnes, and consumption decreased by 10 percent to 3.1 million tonnes.

Crude steel consumption decreased in the first months of this year, but the association said the market has started to improve. 

(By: Vietnam News)