Vietnam's Steel Output Falls 15% in Q1 CY20 Due to Pandemic

Vietnam steel companies witnessed a sharp drop in the production and consumption of steel in the first quarter of CY'20 due to COVID-19 pandemic.

In the first quarter CY'20, the total steel output by the country's steelmakers was recorded 5.4 MnT, down by 15% Y-o-Y and total steel consumption declined by 20% Y-o-Y to 4.4 MnT, according to Vietnam Steel Association.

Meanwhile, steel exports reached 300,000 MT, a reduction of 38% from the same period last year and 21% compared to Dec'19.

The impacts of the COVID-19 pandemic and price reductions in the world steel market have caused a plunge of steel prices and trading activities on the domestic market, according to the association. Higher inventories of steel products and high bank loan interest have made their business efficiency reduce.

VSA vice-chairman said, "The COVID-19 pandemic is having a significant impact on the domestic steel industry because steel producers depend on importing input materials from China. Trading activities between Vietnam and China have greatly slowed and have even been temporarily suspended due to the disease."

The VSA had forecasted that this year, the steel industry will continue to face difficulties, including from protectionism in global markets and a lack of recovery in the domestic real estate market.

~Sourced