Vietnam's Steel Output Rise 24% During Jan-Sep'18

As per data released by Vietnam Steel Association (VSA), country's local steel sector witnessed significant growth in steel output as they are ramping up steel production and introducing new capacities by investing in modern technologies and expanding markets to improve their product quality with the motive to attract overseas buyers.

During first nine months of CY18 (Jan-Sep),nation's steel output stood at 15.4 MnT higher by 24% against similar time frame of previous year.

Steel output up by 18% in Sept'18- On monthly basis nation's steel output registered the growth of 18% to 0.836 MnT in Sep'18 against Aug'18 and reported 19% of surge on Y-o-Y basis against same month of previous year.

Steel consumption declined in September amid rising inventories - In Sep'18 steel inventories expanded by 28% M-o-M basis to 0.579 MnT as compared to previous month following which steel consumption dropped 7%.

Imported steel remains a competitor for domestic mills- Steelmakers in Vietnam are still facing the pressure of imported material despite increased production in domestic market.In first eight months of CY18 (Jan-Aug) volumes of imported steel stood at 13.5 MnT.However with capacity expansion by domestic mill-Formosa Ha Tinh Corporation resulted in decline in imports.

Meanwhile products of construction steel and imported material is facing cut throat competition to maintain their market shares .

Also trade protectionist measures on some steel products of coated steel,alloyed steel and steel bar results to reduction in import volumes in Vietnam

Upcoming steel capacities in Vietnam -Italian equipment supplier Tenova will supply the company - a joint venture of Vietnam Steel Corp, Japan's Sumitomo Corp and Malaysia's FIW Steel - with a galvanized coil line with capacity of 150,000 tonnes per year using cold-rolled and hot-rolled coils, Tenova.

Total capacity at the site when the new galvanizing line comes on stream will be 370,000 tpy expected to start in the third quarter of 2020.The new supply is expected to feed Vietnam's appetite for construction materials while its economy continues to grow.