Hanoi (VNA) – Despite sluggish performance driven by a fall insteel prices, experts are optimistic about the steel industry’s recovery in 2024 as the Government's policies and the revised Land Law are put in place to support the realty market and the construction industry.

According to the Vietnam Steel Association (VSA), steel manufacturing output inSeptember totaled nearly 2.34 million tonnes, up 2.41% month-on-month and down4.2% year-on-year. Steel consumption was nearly 2.2 million tonnes,increasing 4.69% month-on-month, and 9.4% year-on-year.

The results were spurred by the Government's policies to remove bottlenecks andbolster economic growth from January – September, including those acceleratingthe disbursement of public capital for transport infrastructure development.

With recovery in demand, steel enterprises have recorded sound productionresults. Consumption of construction steel, hot-rolled coil steel and steelbillets of Hoa Phat Group reached 596,000 tonnes in September, rising 7%against the previous month. Meanwhile, Vietnam Steel Corporation sold 268,000tonnes of steel in September, the highest amount recorded since the outset ofthis year.

However, the VSA said although public investment and the realty market areheating up, which will boost steel demand for the remainder of the year, it isnot until Q1 of 2024 that the steel market will see strong recovery.

Vietnam’s steel industry has been in a downward spiral, with steel pricesfalling 19 times since the start of 2023. Prices have been hovering around 13.5 million VND(548.56 USD) per tonne, due to gloomy real estate market, slow public investmentdisbursement, and fierce competition from China.

According to the steel industry's specialist Nguyen Van Sua, a slump in the realty marketsince the end of 2022 has driven steel demand down, while steel productsimported from China at cheaper prices have created pressure on domestic steelprices.


In a bid to stabilise steel prices, it is necessary to accelerate theimplementation of real estate and public investment projects, Sua said, adding that when the realty market becomes more vibrant, the steel market will heatup.

VNDirect Securities Corporation said that the steel industry will boomin 2024. Theadoption of the amended Land Law will help remove financial bottlenecks for housebuyers, throwing a charge into the real estate market.

Meanwhile, Director of Mercantile Exchange of Vietnam Pham Quang Anh believedthat concerted efforts of the Government to promote the disbursement of publiccapital will stimulate demand and step up domestic business and productionactivities.

With robust signs from the realty and construction sectors, the steel market willrecover soon, he added./.