Vietnamese government demands to increase domestic steel production capacity

Vietnam's Vice Premier Li Mingkai asked the Ministry of Industry and Trade to take measures to improve the production capacity of domestic steel products to meet basic domestic demand.

The vice premier also asked the Ministry of Industry and Trade to study and adjust the imbalance of steel supply in the market, and give priority to the domestic market by adjusting and balancing the export volume of steel products.

Since the beginning of the year, the price of construction steel in Vietnam has risen sharply to 45%. According to the Ministry of Industry and Trade, the reason for the rise in steel prices is that soaring prices of raw materials for iron and steel production on the global market, coupled with the extension of COVID-19 and delivery time, which have also led to soaring steel prices.

Steel prices will stop rising at the end of the second quarter, according to a previous forecast by the Vietnam Steel Association (VSA). But for now, the situation is changing. Considering the situation of many markets such as China, the United States, India and the European Union, it is believed that the rising trend of steel prices will last until the third quarter.