Steel production and consumption in the first eleven months of 2022 fell 11.3 per cent and 6.8 per cent, respectively, year-on-year.

In November alone, steel production reached 1.825 million tons, a year-on-year decline of 36.8 per cent, while steel consumption stood at 1.942 million tons, down 16.2 per cent, according to the Vietnam Steel Association (VSA).

Regarding exports, Vietnam exported 6.99 million tons of steel in the first ten months of 2022, a year-on-year fall of nearly 37 per cent. Total export revenue reached more than $6.9 billion, down 28.92 per cent.

Vietnam’s major steel markets are ASEAN, the EU, the US, the Republic of Korea, and Hong Kong (China).

In an assessment of the steel market in November, the Vietnam Steel Corporation (VNSteel) said domestic market demand continues to remain at a low level. Weak consumption has forced many factories to cut production volumes or cease operations.

It also said that the recovery prospects for global steel consumption are problematic due to high inflation, while the tightening of fiscal policies in many countries continues to hinder the global economic recovery.

The domestic market is showing few clear signs of recovery and the real estate market is experiencing difficulties that impact steel consumption.

The Vietnam Dragon Security Company recently forecast that the steel sector has little chance of recovering next year due to low consumption, exchange rate pressures, and high interest rates.