VNSTEEL Sets the Target of 3.095 Million Tonnes of Finished Steel Output in 2024

DNHN - Based on forecasts and assessments of the market situation, VNSTEEL has set a target of 3.095 million tonnes of finished steel output in 2024, assuming favourable market conditions.

2023 was a challenging year for the Vietnamese steel industry, impacted by both domestic and international factors. The real estate market, the main outlet for domestic steel, continued to experience a downturn, with some segments even freezing due to legal bottlenecks, difficulties in accessing credit from banks, and declining household incomes.

The public investment channel was also not optimistic due to low disbursement rates and reduced demand for steel in highway projects. The export market faced strong competitive pressure from cheap Chinese steel flooding the global market.

With weak demand, the average price of most types of steel on the world market in 2023 decreased by 12-15% compared to 2022. Overall, iron ore prices increased sharply at the end of the year but still decreased slightly by 0.34% compared to 2022.

At the end of 2023, VNSTEEL saw a 13% decrease with more than 2.93 million tonnes of finished steel consumed, of which construction steel decreased by 20% and flat steel increased by 17%. In December 2023 alone, consumption output increased by 23% compared to the same period in 2022.

Moving into 2024, VNSTEEL forecasts that the steel market will continue to experience unpredictable fluctuations amidst a challenging global economic growth outlook. However, according to the World Steel Association, global steel demand is expected to grow by 1.9%, while the ASEAN and European regions are projected to see growth of 5.2% and 5.7% respectively.

With Vietnam’s socio-economic development plan for 2024, VNSTEEL expects domestic steel demand to recover and grow by 7% compared to 2023. The recovery is expected to be more evident in the second half of 2024 as the real estate sector in Vietnam gradually recovers.

To achieve this goal, VNSTEEL is committed to maximising all resources, promoting proactiveness and creativity, and driving the emulation movement to exceed the targets set for 2024.

PV