Table 17: Asian steel prices (USD/tonne) (Sep 2013-Sep 2015)

Hot-rolled
coil

Hot- rolled
plate

Cold-rolled
coil

Wire rod
(mesh)

Structural
sections &
beams

Rebar

581
583
579
575
556
498
454
422
379

617
623
633
639
620
552
499
460
422

672
670
663
658
639
579
537
494
455

603
611
599
598
588
526
486
607
414

684
686
678
664
653
590
552
531
491

568
582
559
557
551
483
422
406
377

Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Source: MEPS Steel Prices

2.6

Market outlook

The prospects for the Vietnamese steel industry have some positive changes, thanks to microeconomic management policies of the state and the efforts of the steel sector in enhancing
production and sales activities. However, the negative effects from the unpredictable global
economic conditions, coupled with steel price and currency rate fluctuations, still remain.
Vietnams real estate sector has picked up since 4Q2013 which has renewed spending on
construction projects and rise in steel consumption as this sector is the countrys main steel
consumer. As such, 2015 will be another fruitful year for the industry.
To stimulate the economy, interest rates were cut by 0.5% in March 2014, although steel
producers still find it difficult to access bank loans, it helped ease the burden on economic
sectors including iron and steel. Moreover, with deeper integration into the global economic
community, Vietnam will have to gradually lower its tariff barriers to abide by its WTO and AFTA
commitments. Meanwhile, competition from lower-priced steel imports from China and other
countries in ASEAN will continue to put domestic steel companies under great pressure.
According to the VSA, the steel industry consumption growth target of over 10% per year is an
improvement thanks to rising consumption and reducing inventories. According to the Steel
Industry Development Plan 20152020 and Vision 2025, Vietnam has set a target steel
production of 23mn tonnes by 2020 (13mn: 2015), with a balance production between long and
flat products, and to increase exportation of steel products to 20% of total production by 2020
(15%: 2015).
Table 18: Vietnams domestic consumption forecast
2014

2015

2020

2025

Consumption value per capita (kg)

156

176

252

373

Total domestic consumption (mn tonnes)

14

16

24

37

Source: Ministry of Industry and Trade Vietnam

Steel

Vietnam

15

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