HA NOI (VNS)  — Viet Nam's steel market showed growth in both production and business in the first 11 months of this year, according to the Viet Nam Steel Association (VSA).

In the first 11 months of this year, total output of building steel gained a year-on-year increase of 30.1 per cent to reach 6.1 million tonnes, the association said. This was the highest average growth rate of steel in recent years. Meanwhile, steel consumption saw a year-on-year surge of 24.3 per cent to 5.9 million tonnes of steel in the first 11 months of the year.

Viet Nam Steel Corporation and Hoa Phat were the two leading manufacturers in the local steel market, with an output of 1.35 million tonnes and 1.27 million tonnes of steel, respectively.

The association reported in November that steel makers manufactured 1.3 million tonnes, 28 per cent higher than the same period last year, including 627,700 tonnes of building steel. Meanwhile, the volume of consumption of building steel surged by 30 per cent year-on-year to 593,000 tonnes.

In November production, consumption and exports of galvanised sheets fell compared to October, though it grew in comparison with the same period last year, the association reported.

In November, output of galvanized sheets reached 290,000 tonnes, 5.2 per cent lower than October, but 39 per cent higher than the same period last year. Sales of galvanised sheets stood at 197,600 tonnes, 4 per cent lower than October, but 23 per cent higher than the same period in 2014.

Nguyen Van Sua, VSA deputy chairman, said recovery on the local property market had created positive impacts on steel consumption in the domestic market.

But, the local steel industry still faces competition from cheap steel products from China, he said, therefore the industry expects the relevant offices to maintain barriers to reduce difficulties for steel enterprises.