In response to recent complex and unpredictable developments in the world steel market affecting domestic steel product prices, the Vietnam Steel Association (VSA) has just issued a notice recommending member businesses to promote steel production to supply to the domestic market and limit steel exports.
According to VSA, in recent times, steel prices in the global market as well as in Vietnam have had complicated developments. Steel prices in 2021 tend to increase from the end of 2020 until the middle of the first quarter of 2021 with a downward adjustment, then continue the upward trend until the end of May 2021 begins a downward trend. The current market is stagnant and has no clear upward or downward trend.
Therefore, in a recent dispatch sent to member businesses, VSA recommended that units increase cooperation, prioritize raw steel materials and hot-rolled steel coils for the domestic market, and limit exports to prioritize raw materials and semi-finished products for the domestic market.
At the same time, businesses need to continue to promote production and reduce costs, especially improving management capacity and improving technology in steel production to reduce production costs and ensure price stability. The selling price needs to be declared and listed according to regulations with a reasonable distribution system to stabilize the supply and meet the demand of the domestic steel market.
In addition, this association also believes that State agencies need to strengthen market inspection and supervision to prevent commercial fraud and hoarding speculation. Encourage the export of finished steel products such as construction steel, galvanized steel, steel pipes, cold rolled steel... At the same time, maintain trade defense measures to protect domestic production.
In particular, in the current complex context, management agencies should soon develop a strategy for developing Vietnam's steel industry.
“VSA's market report for the first 5 months of the year shows that steel production of all kinds reached more than 13.4 million tons, up 38.7% over the same period in 2020. Consumption also increased by 38.2%, reaching more than 11.9 million tons, of which steel exports of all kinds increased by 80%, reaching nearly 2.8 million tons.
In May alone, steel output reached more than 2.9 million tons, up 3.53% over the previous month and up 40% over the same period in 2020. Notably, although overall steel consumption only increased by 30.8% over the same period, export output increased by 2.4 times.
Source: Law