Vietnam's steel industry is trapped

Vietnam's "People's Electronic News" reported on September 18 that the new crown pneumonia epidemic has severely affected the global economy. Steel prices have fallen sharply, market sales have fallen, and steel production raw materials prices have increased. It is predicted that Vietnam's steel industry will not only have no growth in 2020, but will also face a series of trade barriers.

According to the Vietnam Iron and Steel Association, due to the fact that the consumption demand of most steel consumption fields such as industrial construction, infrastructure construction, automobile, motorcycle and electronic product production has not recovered, and the price of raw materials for steel production has risen, with an average price of 10.9-11 million Dong / ton. In the first seven months, the output (13.72 million tons) and sales volume (12.36 million tons) of Vietnam's iron and steel industry were both negative growth, with a year-on-year decrease of 6.9% and 9.6% respectively.

In the first half of the year, Vietnam's steel export volume was only 2.28 million tons, down 19.3% year-on-year. The recovery of exports depends on the control of the new crown pneumonia epidemic in the Southeast Asian market. Vietnam's steel exports to the region account for 60% and 57.8% of the volume and value respectively. And because of the increasingly serious trend of trade protection, the Vietnam Iron and Steel Association warned companies to be cautious about exporting to the US market.