The domestic steel price hike has been attributed to a global price increase. To reduce steel prices, production costs need to be cut.

The steel industry experienced many difficulties in 2019 due to stronger steel imports and reduced sales of locally made products at home and abroad.

According to the Vietnam Steel Association (VSA), in the first nine months of 2019, domestic steel output reached 18.83 million tons, an increase of 6.7 percent compared with the same period last year.

The biggest difficulties facing Vietnam’s steel industry are trade remedies applied by importing countries and supply of materials.

Global steel capacity is forecast to be excessive so steel has been pouring into the Southeast Asia region. 

A high number of steel manufacturers have reported loss as export markets have shrunk, while the domestic battle is fierce because of competition.

The retail electricity price increase has dealt a strong blow to the steel manufacturing industry, which is facing difficulties.

With heavy investments by steel manufacturers and Hoa Phat’s strategy on expanding the southern market, the competition in the steel industry is expected to become more intense in the coming time.  

Most steel manufacturers had satisfactory business in the second quarter of the year and the first half. 

VietNamNet Bridge - Experts have warned about scrap imports heading for Vietnam as China has stopped importing some types of scrap. 

It has become more difficult to export steel products to large markets amid the strong rise of protectionism. Steel manufacturers have been advised to protect and exploit the domestic market, which is full of potential.

VietNamNet Bridge - Vietnam’s steel exports are encountering difficulties as they are facing anti-dumping investigations raised by importing countries.

Fearing a China-US trade war worth tens of billions of dollars, Chinese steel manufacturers are rushing to relocate parts of their production capacity to other countries, including Vietnam.

The General Department of Customs (GDC), in an effort to tighten control over scrap imports, has decided that paper and steel scrap importers must have import samples examined prior to customs clearance.

VietNamNet Bridge - Vietnam’s steel and steel products have been subject to many anti-dumping lawsuits in recent years.

VietNamNet Bridge - Ha Tinh’s people once put high hopes on many huge steel projects in their province but most of them have been closed. 

As MOIT insists on developing steel projects, saying there will be a shortage of steel in the future, NA deputies say the ministry has to take responsibility for figures released in the steel industry development strategy. 

When Minister of Industry and Trade Tran Tuan Anh denied there were special group interests in licensing the Ca Na steel complex project, the ministry’s website showed information that indicated support for large-scale steel projects.

In 2015, China topped the world in terms of steel output (803.8 million tons), exporting 111.6 million tons. Meanwhile, Vietnam ranked seventh in the world and the first in South East Asia in steel imports (16.3 million tons).