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Source: VNS

Vietnamese steel sector pivots to domestic market amid export headwinds

Vietnam’s steel industry is shifting focus to the domestic market as export challenges persist, driven by global price pressures, geopolitical risks, and increasing trade barriers.

According to the Vietnam Steel Association (VSA), finished steel output in the first half of 2025 reached 15.8 million tonnes, up 9.7 per cent year-on-year. Domestic consumption rose by 10.2 per cent to 15.7 million tonnes, indicating a strong recovery in local demand.

In June alone, steel exports reached 931,365 tonnes worth USD 611.5 million, showing a slight increase from the previous month. However, for the first half overall, total exports dropped to 5.66 million tonnes, generating USD 3.70 billion, down 13 per cent in volume and 22.5 per cent in value compared to the same period in 2024.

The sharper decline in export value reflects a global drop in steel prices, which has disproportionately affected revenue despite relatively stable output.

The VSA attributed the sector’s struggles to prolonged geopolitical tensions, shifts in import policies, and a rise in trade defence measures from key markets. These factors have weakened international demand and created mounting technical and regulatory barriers for Vietnamese steel exporters.

Looking ahead, steelmakers are pinning their hopes on further domestic market recovery in the second half of 2025. However, the outlook for exports remains bleak, with global oversupply expected to keep prices subdued and restrict short-term opportunities for rebound.

Content link: https://dtinews.dantri.com.vn/vietnam-today/vietnamese-steel-sector-pivots-to-domestic-market-amid-export-headwinds-20250727132250410.htm