The determination of the Government, ministries, sectors and localities to promote disbursement of public investment, and efforts taken to address difficulties and speed up the development of the real estate market are positive signs for the steel industry to regain growth momentum in the remaining months of 2023 and early 2024, according to insiders.

Since March, the steel price has been adjusted down 19 times, with the current price fluctuating around 13.7 million VND (563.2 USD) per tonne, the lowest in the past 3 years.

The decreases were attributed to gloomy real estate market, slow public investment disbursement, and fierce competition from China.

According to the steel industry's specialist Nguyen Van Sua, a slump in the realty market since the end of 2022 has driven steel demand down, while steel products imported from China at cheaper prices have created pressure on domestic steel prices.

In a bid to stabilise steel prices, it is necessary to accelerate the implementation of real estate and public investment projects, Sua said, adding that when the property market becomes more vibrant, the steel market will heat up.

According to the Vietnam Steel Association (VSA), steel manufacturing output in September totalled nearly 2.34 million tonnes, up 2.41% month-on-month and down 4.2% year-on-year. Steel consumption was nearly 2.2 million tonnes, increasing 4.7% month-on-month, and 9.4% year-on-year.

In the third quarter, nearly 6.5 million tonnes of steel were sold, up 6.3% year-on-year. Of the total, over 2 million tonnes were shipped abroad, representing a year-on-year surge of 70%.

With recovery in demand, steel enterprises have recorded sound production results. Consumption of construction steel, hot-rolled coil steel and steel billets of the Hoa Phat Group reached 596,000 tonnes in September, rising 7% against the previous month. Meanwhile, the Vietnam Steel Corporation sold 268,000 tonnes of steel in September, the highest amount recorded since the outset of this year.

Experts are optimistic about the steel industry’s recovery in 2024 as the Government's policies and the revised Land Law are put in place to support the real estate market and the construction industry./.VNA