Construction steel sales the highest in the industry due to real estate recovery.
Sales by members of the Vietnam Steel Association (VSA) recorded strong growth in the first quarter of this year, according to a VSA report.
Total sales stood at 2.5 million tonnes in the first three months, an increase of 25 per cent compared with the same period last year. The consumption of construction steel accounted for more than half, at 1.29 million tonnes, up 10 per cent against the first quarter of 2014.
Construction steel sold by VSA members reached 651,633 tonnes in March, more than 160 per cent higher than in February and up 14 per cent compared to March last year.
According to a representative from VSA, the government’s economic stimulus policies have heated up the construction materials industry. The recovery of the real estate market has also contributed to growth in the steel industry, especially construction steel.
Sales of steel pipes and galvanized steel sheets in the domestic market also increased healthily, by 20 per cent and 81 per cent, respectively, over the same period of 2014.
The total production capacity of VSA members exceeded 2.7 million tonnes in the quarter, an increase of 17 per cent year-on-year. Construction steel led the way, with 1.27 million tonnes, 18 per cent higher than in the first quarter of last year. Production of steel pipes, cold rolled steel and galvanized steel sheets increased 25 per cent, 10 per cent and 18 per cent, respectively.
Exports, however, fell slightly, to some 360,943 tonnes worth around $282 million, a decline of 6 per cent and 4 per cent, respectively.