Steel sales drop 7% in 11 months

Steel output in Vietnam dropped 11.3% year-on-year in the first 11 months of the year to 27.12 million tons, while sales fell 6.8% to 25.1 million tons, according to Vietnam Steel Association.

In November, output went down 36.8% year-on-year to 1.83 million tons, while sales declined 16.2% to 1.94 million tons.

In the first 10 months of this year, Vietnam earned $6.95 billion from exporting 6.99 million tons of steel, down 28.92% and 36.92% year-on-year, respectively.

The biggest export destinations were ASEAN, accounting for 42.22% of the total, the EU (16.92%), the U.S. (7.71%), South Korea (5.9%), and Hong Kong (5.67%).

The country spent $10.29 billion on importing 9.76 million tons of steel in the 10-month period, down 8.38% year-on-year in volume but up 6.87% in value. Major suppliers were Asian, including mainland China with 44.11% of the total; Japan (15.65%), South Korea (11.11%), Taiwan (9.74%), and India (8.55%).

In the report, the association (VSA) pointed out the global economy next year would slow down, with high inflation, risks of short-term recession, military conflicts, natural disasters, and diseases, among others.

However, the prospect of Vietnam's economy in 2023 would be positive, the VSA quoted international institutions' forecasts as saying.

Hoa Phat Group (HoSE: HPG), the largest Vietnamese steelmaker, produced 384,000 tons of crude steel in November, down 43% year-on-year. Its sales of steel products reached 443,000 tons, down 30%. Of this, construction steel accounted for 252,000 tons, up 20% compared to October and down 7% year-on-year. Hot-rolled coil (HRC) hit 180,000 tons, down 12% year-on-year.

In line with the market trend, Hoa Sen Group's (HoSE: HSG) sales in the third quarter decreased by 44% over the same period last year to 313,000 tons. Of this, exports plunged 76% to 94,000 tons, while domestic sales increased by 32% from its lowest point in the same period in 2021.

Taiwanese-invested Formosa Ha Tinh Steel Corporation (FHS) will adjust its production plans for the remaining months of the year as demand declines in the U.S. and European markets, a company representative said in mid November.