According to the Vietnam Steel Association (VSA), in March this year Vietnam’s steel production and sales continued to improve after the slump in January, but overall steel output in the country in the first quarter fell by six percent year on year due to the impact of the coronavirus worldwide. The decline of overall production and steel imports to the country was much less than originally expected.
In March, steel production in Vietnam totaled 2.12 million mt, up 7.9 percent from the previous month, but down 7.8 percent year on year. Sales of steel products increased sharply compared to February by 28.2 percent to 2.06 million mt, but were still 3.6 percent lower than March 2019.
As a result, steel production in Vietnam decreased by six percent year on year to 5.73 million mt in the January-March period, according to VSA, while originally it was expected to drop by more than 10 percent, according to market reports. Steel sales in Vietnam fell more sharply, by 12.4 percent year on year to 5.03 million mt. This was due to both lower local sales and the decrease in exports. Export shipments amounted to 1.02 million mt in the first quarter, dropping by 21.3 percent compared to the same period in 2019.
At the same time, imports surged in Vietnam to 1.34 million mt in March, adding 30.4 percent compared to February, according to the data published by the General Department of Customs. In the first three months, 3.3 million mt of steel were imported into the country, still 1.8 percent lower year on year. Nevertheless, the pace of decline was 0.5 percentage points slower than in the January-February period.
