Steel sector turns to domestic market amid export difficulties

Steel sector turns to domestic market amid export difficulties

For the first half of the year, total steel export volume reached just 5.66 million tonnes, generating US$3.7 billion in export value — down 13 per cent and 22.5 per cent respectively compared to the same period in 2024.

A Hòa Phát Group steel warehouse. — Photo hoaphat.com.vn

Việt Nam’s steel industry experienced significant fluctuations in the first half of 2025, grappling with a series of external challenges including tariff barriers, trade defence measures, geopolitical tensions and new policies imposed by importing countries. 

According to the Việt Nam Steel Association (VSA), finished steel output reached 15.8 million tonnes during the first six months, a year-on-year increase of 9.7 per cent. Domestic consumption rose by 10.2 per cent to 15.7 million tonnes, signalling a clear recovery in the local market.

In June alone, Việt Nam exported 931,365 tonnes of steel products with an export value of US$611.5 million, posting a modest increase compared to the previous month.

However, for the first half overall, total steel export volume reached just 5.66 million tonnes, generating $3.70 billion in export value – down 13 per cent and 22.5 per cent respectively compared to the same period in 2024. The primary cause was a sharp drop in global steel prices, which pulled export value down more steeply than output.

The VSA noted that the past six months saw the market heavily affected by global political instability and shifts in import policies from various countries, weakening international demand for steel. At the same time, escalating trade defence measures and technical barriers have made it increasingly difficult for Vietnamese exporters to access foreign markets.

Looking ahead to the second half of 2025, industry players are placing their hopes on the domestic market, with expectations of a more significant recovery in demand.

Nonetheless, exports are forecast to continue facing headwinds, as global oversupply keeps steel prices under pressure and unlikely to rebound significantly in the short term. 

Bizhub