Vietnam's steel production to grow by 2-3% in CY23: VSA

Steel production in Vietnam has been forecasted to increase by 2-3% y-o-y in 2023 to meet both domestic consumption and import demand according to the VSA (Vietnam Steel Association). However, the market is predicted to continue to be complex due to unexpected changes in global prices of both steel materials and products.

Vietnam's steel industry overview in CY 2022

• Vietnam crude steel production reached 19.9 million tonnes (mnt) which is down by 11% y-o-y. The country's finished steel production reached 29 mnt which is down by 11.9% y-o-y.
  
  
• Vietnam's apparent steel consumption last year rose marginally, by 0.81% to 22.23 mnt.
  
  
• In 2022, Vietnam imported about 11.68 mnt of finished steel products, lower by 5.62% y-o-y.
  
  
• In 2022, Vietnam exported about 8.397 mnt of steel, down 35.85% over the last year.
  
  
• Country's per capita consumption is currently at 240 kg/person, which is expected to increase to 290 kg/person by 2030.
  
  

Update on steel mill's investments

• Quang Tri Iron and Steel Projects have a capacity of about 4.5 mnt/year.
  
  
• DST Nghi Son Iron and Steel Joint Stock Company has a capacity of 980,000 tonnes (t)/year of hot rolled steel coils (EAF technology); 30,000 t of structural steel; and 300,000 t steel pipes.
  
  
• Long Son Integrated steel mill has a capacity of 5.4 mnt/year.
  
  
• Xuan Thien green steel complex project has two plants with capacity of 7.5 mnt and 2 mnt per annum (pa).
  
  

Outlook

The production value of construction sector in Vietnam is increasing continuously to fulfill the demand of those sectors. The huge consumption of steel is captured by automobile sectors, the major contribution in its consumption is of passenger cars.

Demand for high-quality fabricated and alloy steel is expected to rise too.

VSA forecasts that Vietnam's total steel demand will hit 30-32 mnt by 2030.