Domestic steel consumption drops strongly from May

Domestic consumption of steel in June dropped 14.9%compared to May to 1,794,193 tonnes and production output also fell 1.25% month on month to 2,058,445 tonnes, according to the Vietnam Steel Association.

domestic steel consumption drops strongly from may hinh 0
Illustrative image (Source: VNA)
However, the figures showed increases if compared to the same period last year, at 28.6% for sale of steel products and 28.4% in terms of output. 

In particular, sale of construction steel reduced by 25.6% on a monthly basis with 778,146 tonnes sold. Production of the product also decreased by 5.13% from May to 806,252 tonnes. 

Explaining the drop, Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association, said the May sale of construction steel was the highest in the past five years. In addition, it is normal that sale of construction steel decreases in June as construction activities usually slow down in the rainy season. 

He added that despite the monthly fall, the figures still showed increases from the same period last year.  

At the same time, Sua warned that the world steel market contains many potential risks due to the dispute related to the US’s tariff on imported steel. 

Vietnam’s steel products are also facing some trade protection measures in other countries. 

Besides, an appreciating US dollar and sluggish stock market are likely to affect the steel sector’s growth. 

The Ministry of Industry and Trade forecast that the steel industry can maintain a growth rate of 20% this year, but urged vigilance against the impacts of the US-China trade war and rising trade protectionism.  

Director of the ministry’s Planning Department Duong Duy Hung said it is necessary to take legal trade defence measures to protect the domestic steel industry.
VNA

Related news