Vietnamese Steel Consumption Increases to 10MT in 2007

Vietnamese steel consumption is estimated to have been 9.6-10 million tonnes through 2007, increasing by 2.4-2.8 million tonnes from 2006. Steel demand seems to have expanded from building and plant constructions along its rapid economic growth, according to Vietnam Steel Association and local steel maker sources. Long product consumption was likely to be 4.7-4.9 million tonnes while flat product about 5 million tonnes. In 2008 annual consumption is expected to increase by 20-25% year-on-year.In Vietnam, building construction is active for plants, warehouses, condominiums and superhighways, especially after entering WTO membership in January 2007. Domestic output of long products is estimated to have increased by 25% to 4.2-4.4 million tonnes in 2007 from 2006. Annual output of reinforcing concrete steel bar seemed to increase by 30% to around 3 million tonnes. Wire rod production was likely to be around 1 million tonnes and other products 200,000-300,000 tonnes.Annual consumption of hot rolled flat steel was 3.357 million tonnes in 2006, just as much as imported hot rolled products. In 2007 Vietnamese import of hot rolled products was likely to equal to its domestic consumption as well. Hot rolling facilities had not started commercial operations in the country yet.Total steel import was 8.1 million tonnes in 2007, up by 42.6% from 2006. Semi-finished steel import was around 2 million tonnes and ferrous scrap was 400,000-500,000 tonnes. Hot and cold rolled flat products import was likely to be around 5 million tonnes.Vietnamese crude steel production is estimated at 1.8 million tonnes in 2007, increasing by 400,000 tonnes from 2006.