Vietnam's steel production is expected to increase by 6% - 8% in 2020

According to a recent report from Vietnam Steel Association (VSA), Vietnam's steel production is expected to grow slightly this year, with a year-on-year growth of about 6% - 8%.

The association said the global steel market had slowed down in the past year and predicted that steel consumption would not improve in the first quarter of this year.

In 2020, Vietnam's crude steel production is estimated to be close to 18 million tons, of which the hot-rolled steel production is about 17.1 million tons.

Vietnam is expected to continue to import iron ore (nearly 17 million tons) and scrap steel (about 5 million tons) and other steel-making raw materials this year.

Next year around the world, the growth rate of steel production capacity may exceed the growth rate of demand, leading to the reduction of exports and profits.

Vietnam Iron and Steel Association said that a large number of proposed long process steel-making projects in ASEAN region will lead to a serious oversupply in the region, and it is expected that the local consumer market will take about 20 years to fully digest these production capacity.

Vietnam's domestic steel industry will continue to face many challenges due to the increasing domestic supply and competitive pressure brought by imported resources, as well as the tightening of credit in the domestic real estate industry and the extension of construction projects.