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Domestic steel sector sees high hope for recovery in 2024: Experts | Business

Domestic steel sector sees high hope for recovery in 2024: Experts hinh anh 1Illustrative image (Source: VNA)

Hanoi (VNA) – With bright signs seen in the last
months of 2023, many experts predicted that the domestic steel sector can recover in
2024.

According to the Vietnam Steel Association (VSA), steel sales
in November and December 2023 reached the highest levels in 20 months with
growth between 20-40% for different products.

This year, along with a bright outlook of the domestic economy
plus the government’s policies to promote public investment, steel production and
consumption may reach 29 million tonnes and 21.67 million tonnes, marking rises of 6.7% and 7.4% year on year, respectively, it said.

Meanwhile, Viet Dragon Securities forecast that construction
steel sales of Vietnam’s leading producer – Hoa Phat Group, will surge 29% to
4.8 million tonnes in 2024 due to higher demand for construction materials.

In the last month of 2023 alone, the Vietnam Steel
Corporation (VSA) sold more than 324,300 tonnes of steel, up 53% over the
previous month and 36% year on year.

To meet the market’s increasing demand, the Hoa Phat Group plans
to put the second phase of its factory complex into operations in 2025,
doubling the plant’s hot rolled coil production capacity to 6 million tonnes.

Steel expert Nguyen Van Sua held that as domestic firms have
recovered and stayed ready for opportunities, the government, ministries and
sectors should design stronger policies to boost the real estate market to
support the breakthrough of the steel sector in 2024.

He advised steel producers to focus on green production by
applying green technologies to reduce carbon emissions and expand export
markets.

VSA General Secretary Dinh Quoc Thai asserted that domestic steel
demands will surge again along with the recovery of the real estate market in 2024,
with an expected increase of construction projects. The government is likely to speed
up the disbursement of public investment capital in 2024 to create breakthrough
growth, motivating the expansion of some sectors, including steel.

The Ministry of Industry and Trade said that it will continue to research and
apply suitable trade defence measures to protect the domestic steel market, while
coordinate with associations and businesses in the industry to grasp
opportunities in the domestic market.

Particularly in the third quarter of 2024, the ministry will
complete the building of a steel strategy until 2030 with a visit to 2050 to
lay a foundation for the industry’s fast and sustainable growth./.




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