The production and consumption of building materials in Vietnam resumed at the end of third quarter of the current year, as more construction works started to be completed, according to Vietnam News. The Vietnam Steel Association has warned local producers to watch the market in order to avoid a supply surplus.
According to the association, production of steel in Vietnam increased to 18.34 million mt in the first nine months this year, from 17.46 million mt recorded in the same period in 2019.
Steel consumption in the ASEAN region and in Vietnam will reportedly increase by up to seven percent by 2021, with Chinese investments in integrated carbon steel mills in these countries.
Local producer Hoa Phat has exported more than one million mt of billet to China so far this year, accounting for 70 percent of the country’s total billet exports. Buying steel from ASEAN countries was more effective and economical for Chinese buyers at some periods, but it was a big challenge for the local industry to compete with Chinese companies when production resumed, as SteelOrbis understands.
The government speeded up public investment projects, which will boost local industry. The acceleration is expected to have a positive impact on the recovery and the growth of the building materials industry, including the steel industry, by the end of the year.