The Vietnam steel market, which experienced a decline in the first two months of 2023, is showing strong signs of recovery. Recent figures released by the Vietnam Steel Association (VSA) indicate that the market has begun to rebound, instilling renewed optimism among industry players and buyers alike.
In the initial months of 2023, crude steel production witnessed a year-on-year decline of 22%, reaching 2.9 million tonnes, while sales fell by 10% to 3.1 million tonnes. However, the VSA reports that the market has started to regain momentum, indicating positive changes ahead.
Tran Dinh Long, Chairman of the Hoa Phat Group, one of the leading steel manufacturers in Vietnam, expressed confidence in the industry’s recovery. He stated that the most challenging period for the steel industry may have passed, and the quarterly performance of his company reflects the current state of the market.
Despite the initial setbacks, the capacity of companies like Hoa Phat and others in the industry remains robust. However, the prospects of these enterprises are closely tied to market demand. Tran Dinh Long expressed hope that the government would further boost public investment, which would positively impact the steel industry.
- March saw a notable upturn for Hoa Phat, as they reported a 6% increase in crude steel production, manufacturing 440,000 tonnes compared to the previous month. Sales of steel billets, construction steel, and hot-rolled coil steel also surged by 5%, reaching 500,000 tonnes.
This upward trend in production and sales is a promising indicator for the overall recovery of the Vietnam steel market. As demand strengthens and market conditions stabilize, buyers interested in procuring steel products from Vietnam can anticipate a steady supply of high-quality materials.
Vietnam’s steel industry has gained recognition for its modern manufacturing facilities and adherence to international quality standards. Buyers seeking steel products can rely on Vietnam’s robust supply chain, efficient logistics networks, and competitive pricing.
To ensure quality assurance and compliance, buyers should prioritize sourcing from reputable suppliers who adhere to rigorous quality control processes and possess relevant certifications. Conducting due diligence, requesting samples, and verifying compliance with regulations will help ensure the procurement of reliable and high-quality steel products.
Although Vietnam’s steel market is rebounding, buyers should consider factors such as transportation costs, customs duties, and tariffs when calculating the overall procurement budget. Working closely with trusted sourcing agents and suppliers with a proven track record will help mitigate potential supply chain risks.
In conclusion, the Vietnam steel market is experiencing a strong rebound in 2023 after a temporary decline. As the industry shows signs of recovery, buyers can confidently source high-quality steel products from Vietnam. By leveraging the country’s resilient manufacturing capabilities, competitive pricing, and commitment to quality, buyers can secure reliable suppliers and contribute to their success in the dynamic steel market.