In November, Vietnam’s HRC exports continued to struggle, forcing companies to shift focus to the domestic market to boost consumption. According to the Vietnam Steel Association (VSA), HRC exports declined by over 70pct to 101,000 tons. Overall, HRC sales for the month fell 18pct YoY to 499,000 tons, according to the local media reports.
Over the first 11 months of the year, HRC steel sales declined by 2pct to 6 mln tons, with exports down 31pct to 2.2 mln tons.
The steep drop in exports is attributed to fierce competition from Chinese producers. Additionally, Vietnam faces pressure from trade measures in major export markets, including anti-dumping investigations in India and the EU.
The EU remains the second-largest export market for Vietnamese steel, while India ranks fifth. In response to weak export conditions, local producers have shifted focus to the domestic market.
Domestic HRC consumption increased by 28pct YoY to nearly 3.9 mln tons in the first 11 months. The domestic market saw a boost in demand for galvanized and construction steel.
In addition, Vietnam’s anti-dumping probes on Chinese and Indian HRC imports have eased domestic market pressure. November marked the first month this year to see a 20pct YoY drop in steel imports from China to 876,000 tons.
Vietnam has two major HRC steel producers, Formosa and Hoa Phat, with a combined production capacity of 8 mln tons.
