The steel industry is forecasted to grow at 12% this year
The steel industry is forecasted to grow at 12% this year
The steel industry is forecasted to grow at 12% this year
In the first 9 months of 2017, the steel production of domestic enterprises reached more than 15.4 million tons, up 24.2% over the same period in 2016. Thus, in the first 9 months of 2017, the production and business of the company. domestic steel enterprises grew quite well, creating a high premise for this year's growth.
According to the Vietnam Steel Association (VSA), through September and the first nine months of 2017, although the production and business of steel enterprises still face many difficulties, however, with experience and unremitting efforts of the business has helped the production and consumption of steel both grow quite well.
Photo
Steel industry has positive growth in 9 months of 2017. Specifically, in September 2017, steel production of domestic steel enterprises reached 836,624 tons, an increase of 19.4% over the same period in 2016 and an increase of 18.13%. compared with the previous month. In which, consumption reached 740,565 tons, down 6.5% compared to the previous month, but increased 16.5% over the same period in 2016. Inventories as of September 30, 2017 were 579,342 tons, up 28% compared to the end of August 2017.
For input materials for steel rolling such as billet, there are also unusual transaction prices, on October 6, 2017, billet prices fluctuated at USD 525-530 / ton at Dong A port – this level decreased by about USD 15 / ton. tons compared to the beginning of September 2017, after increasing by 70 USD/ton at 540-550 USD/ton in early September 2017.
In the third quarter of 2017, the price of ingots increased by about 90 USD/ton compared to the second quarter of 2017. In general, the price of input materials for steel production in the third quarter of 2017 increased quite high compared to the price level in the second quarter of 2017. Compared to the beginning of 2017, the prices of raw materials increased. However, the price of construction steel increased disproportionately, currently, the selling price in the North region is fluctuating about 12.5 million VND/ton, about 13.5 million VND/ton in the South at the factory.
Generally in the first 9 months of 2017, domestic steel production reached more than 15.4 million tons, up 24.2% over the same period in 2016. In which, consumption reached nearly 13 million tons, up correspondingly. was 20.5% over the same period last year.
According to the Vietnam Steel Association (VSA), the total number of steel products produced in 2016 reached 17.5 million tons, up 16.8% compared to 2015; sales of steel products reached more than 15.3 million tons, an increase of 23.7% compared to 2015. VSA forecasts that, in 2017, Vietnam's steel industry will continue to grow by 12% compared to 2016.
The above results show that, in the first 9 months of 2017, production and business of domestic steel enterprises grew quite well. This is the premise for the 12% growth target this year to be fully achieved.
However, the steel industry still has difficulties and limitations. Specifically: to meet the full design capacity of domestic steel enterprises is still very far away, because the average production of the whole steel industry is currently only running at over 70% of the designed capacity. corresponds to the forecast of consumption, avoiding the situation of having a lot of inventory. The reason that domestic enterprises have not run 100% of the design, is that the consumption pressure from imported goods is still high.
According to VSA, domestic competition is increasingly fierce due to oversupply, many new projects have come into operation and imported steel has penetrated strongly into the Vietnamese market, especially Chinese steel. Consumption is difficult, units have to continuously reduce selling prices to keep market share, causing production and business efficiency to decrease.
Meanwhile, new projects continue to "launch" at the end of this year. Hoa Phat Group plans to put into production a color coated steel sheet factory with a capacity of 400,000 tons/year, Viet Duc Steel Pipe Company also put into operation a 350,000 tons/year long-rolled steel factory, Formosa's iron and steel project closes. contributed 1-1.3 million tons in 2017.
In order to ensure the development of the steel industry, it is necessary to continue researching and applying safeguard measures to steel products that are vulnerable to imported steel.
Currently, the technical barrier is the Joint Circular No. 58/2015/TTLT-BCT-BKHCN, dated December 31, 2015 of the Ministry of Industry and Trade and the Ministry of Science and Technology Regulations on steel quality management. domestic production and imported steel. Although this document is effective, it is not strong enough to combat technical and commercial fraud from imported steel from China, so it is necessary to build stronger and taller legal corridors.