Domestic steel sector sees high hope for recovery in 2024: Experts

Producing steel at a factory of Việt Nam's largest steel maker Hòa Phát Group in northern Hải Dương Province. — VNA/VNS Photo Tuấn Anh

HÀ NỘI — With bright signs seen in the last months of 2023, many experts predicted that the domestic steel sector can recover in 2024.

According to the Vietnam Steel Association (VSA), steel sales in November and December 2023 reached the highest levels in 20 months with growth between 20-40 per cent for different products.

This year, along with a bright outlook of the domestic economy plus the Government’s policies to promote public investment, steel production and consumption may reach 29 million tonnes and 21.67 million tonnes, marking rises of 6.7 per cent and 7.4 per cent year on year, respectively, it said.

Meanwhile, Việt Dragon Securities forecast that construction steel sales of Việt Nam’s leading producer – Hòa Phát Group, will surge 29 per cent to 4.8 million tonnes in 2024 due to higher demand for construction materials.

In the last month of 2023 alone, the Vietnam Steel Corporation (VSA) sold more than 324,300 tonnes of steel, up 53 per cent over the previous month and 36 per cent year on year.

To meet the market's increasing demand, the Hòa Phát Group plans to put the second phase of its factory complex into operations in 2025, doubling the plant’s hot rolled coil production capacity to six million tonnes.

Steel expert Nguyễn Văn Sưa held that as domestic firms have recovered and stayed ready for opportunities, the Government, ministries and sectors should design stronger policies to boost the real estate market to support the breakthrough development of the steel sector in 2024.

He advised steel producers to focus on green production by applying green technologies to reduce carbon emissions and expand export markets.

VSA General Secretary Đinh Quốc Thái asserted that domestic steel demands will surge again along with the recovery of the real estate market in 2024, with an expected increase of construction projects. The Government is likely to speed up the disbursement of public investment capital in 2024 to create breakthrough growth, motivating the expansion of some sectors, including steel.

The Ministry of Industry and Trade said that it will continue to research and apply suitable trade defence measures to protect the domestic steel market, while coordinate with associations and businesses in the industry to grasp opportunities in the domestic market.

Particularly, in the third quarter of 2024, the ministry will complete the building of a steel strategy until 2030 with a vision to 2050 to lay a foundation for the industry’s fast and sustainable growth.