According to the Vietnam Steel Association (VSA), steel demand weakened significantly across export markets, with both output and revenue declining amid heightened geopolitical tensions and protectionist trade measures.

In the first six months of the year, Vietnam produced 15.825 million tons of finished steel, up 9.7% year-on-year. Domestic sales of finished steel reached 15.727 million tons, a 10.2% increase over the same period in 2024.

However, steel exports struggled. In June 2025 alone, Vietnam exported 931,365 tons of various steel products, worth approximately $611.5 million, reflecting modest growth of 4.3% in volume and 1.9% in value compared to May 2025.

For the entire six-month period, cumulative steel exports totaled 5.66 million tons, generating $3.7 billion in revenue. This marked a 13% drop in volume and a steeper 22.5% plunge in value compared to the first half of 2024. The disproportionate decline in export value was largely driven by falling global steel prices, despite relatively smaller reductions in shipment volume.

VSA noted that the industry has been battered by rising global trade protectionism, including new tariff barriers and safeguard measures, alongside volatile global steel market trends and the impacts of ongoing geopolitical conflicts. These factors have depressed global demand for steel and complicated export strategies.

Looking ahead to the second half of 2025, VSA expects domestic production and consumption to rebound more strongly. However, the export outlook remains uncertain, with global steel prices under continued pressure due to oversupply across major markets.

PV