Vietnam to produce 11.3b tonnes of crude, rolled steel

These figures represent a year-on-year increases of 16.6% and 18% respectively.

The combined output of 11.3 million tonnes will fully meet domestic demand, especially for steel ingots, steel beams and cold-rolled steel, the ministry said.

Meanwhile, the Vietnam Steel Association (VSA) said production would continue to grow, but at a slower pace than in 2016. The total steel output for this year is estimated to increase 12% year-on-year to reach 19.6 million tonnes.

This year, the ministry will use trade barriers to ensure fair competition with steel imports and also follow closely the impact of such measures on domestic production and consumption.

The ministry has directed steel enterprises to upgrade production technologies and save production costs to become more competitive. They should also have flexible monthly and quarterly plans to build a distribution network and promote their brands.

VSA Chairman Ho Nghia Dung said the association will continue to propose development policies for the steel industry. It will also monitor the market for raw materials and semi-processed products that have a direct impact on the domestic market, including iron ore, scrap steel, steel ingots and hot-rolled steel in order to provide timely information to local enterprises, he said.

Construction steel boom

The steel industry turned out 17.5 million tonnes of steel last year, up 16.8% from 2015, according to the VSA.

This included 5.1 million tonnes of crude steel and 5.3 million tonnes of rolled steel, a year-on-year growth of 20.5% and 26.8%, respectively.

More than 15.3 million tonnes of the annual output was sold, representing an annual increase of 23.7%, the association said.

VSA Chairman Dung was quoted by the bnews.vn. website as saying the growth in construction steel, which makes up about 50% of the total steel products, was a highlight of 2016.

Over 8.5 million tonnes of building beams were produced last year, an increase of 18.3% year-on-year, and sales of the product also jumped 20.6% to 8.4 million tonnes.

The sector exported US$2.4 billion worth of goods last year, but imports soared to US$9.1 billion. Due to uneven development within the sector, Vietnam has to import large volumes of raw material and semi-processed products to serve production, the VSA said.

The country imported more than 1.8 million tonnes of pre-painted galvanised iron, as well as 8.1 million tonnes of alloy steel. Despite having spare production, the country still imported more than 1.1 million tonnes of steel ingots last year, or 12.6% of what was available in the market.