Steel Association Foresees Sector Recovery in 2024

SEATTLE (Scrap Monster): The Vietnam Steel Association (VSA) expects the domestic steel sector to post recovery in 2024, mainly on account of bright outlook for the country’s economy and the government policies aimed at promoting public investment.

The Association noted that the steel sales had recorded huge surge during the final two months of 2023. The sales had hit highest levels in more than 1.5 years, with various products registering growth of between 20-40%. The steel production in 2024 is projected to reach 29 million tonnes, higher by 6.7% from the previous year. Also, the steel consumption is projected to increase by 7.4% year-on-year to total 21.67 million tonnes this year, VSA noted.

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In December 2023 alone, the steel sales by the VSA had totalled around 324,000 tonnes. This is higher by 53% from the previous month and by 36% from the corresponding month a year before.

The construction steel sales by Hoa Phat Group is forecast to record year-on-year surge by 29% to 4.8 million tonnes during the current year, driven by anticipated higher demand for construction materials. The steelmaker has already announced plans to double its hot rolled coil production facility to around 6 million tonnes by 2025.

Meantime, experts called upon steel producers to focus more on green production technologies so as to reduce carbon emissions.