Domestic steel consumption recorded a modest year-on-year rise of 2.7 per cent in April to some five million tonnes, according to the Viet Nam Steel Association (VSA).

Last month, the purchase of construction steel products dropped 14 per cent year-on-year to reach more than 635,000 tonnes. As of April 30, the inventory volume of construction steel stood at 720,000 tonnes, much higher than the previous month.

Consumption of steel pipes also saw a slight decrease of 5 per cent to some 158,000 tonnes, the association said.

According to VSA, 6.23 million tonnes of steel, worth US$3.18 billion, were shipped to Viet Nam until April 15, marking a yearly slump of 5 per cent in volume but an increase of 22 per cent in value.

The association attributed the drop in the quantity of imported steel to the positive impact of Viet Nam’s safeguard measures, which have resulted in local enterprises having to face less pressure from competition.

Earlier, the association predicted the local steel industry would likely enjoy 10-12 per cent growth this year.

With expected GDP growth of 6.2 per cent this year and the operation of 10 steel projects in 2017, the sector’s growth is expected to expand further, it said. — VNS