The Vietnamese steel industry was hit by unexpectedly sharp price declines in the first quarter of 2024. According to data from the Vietnam Steel Association (VSA), domestic steel sales in February 2024 also decreased by 41% compared to January and 33% compared to the same period in 2023, reaching 594,811 tons.
Faced with fierce competition for market share, steel mills began to reduce their selling prices to maintain market share. This puts further pressure on steel businesses struggling with high inventories and low sales.
According to SteelRadar's evaluation, Vietnam rebar prices, which were at 583.00 USD on April 1, dropped sharply to 575.00 USD on April 3. HRC prices are stable at 582.00 USD.
Cheap steel from China also negatively affects the Vietnam steel market. In the first 2 months of 2024, China's steel exports increased by 32.6% and reached 15.9 million tons. This situation reduced world steel prices by 12.4% to 3,521 CNY/ton (486 USD).
Experts state that the stagnation in the real estate market in China has reduced steel prices. In contrast, VSA estimates that Vietnam's steel production could increase by 10% in 2024 and 8% in 2025. SSI Research predicts that the profits of steel companies will increase in 2024.
Vietnam steel industry is going through a difficult period in 2024. The unexpected price drop and increasing competition put great pressure on steel enterprises. Experts have a cautious perspective on the future of the industry.
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