- HRC output jumps 42%, construction steel production rises by 19% y-o-y
- Finished steel output grows 15%, supported by stronger domestic demand
Vietnam’s steel industry recorded robust double-digit growth in H1CY’26, with crude steel production and consumption increasing 26.9% and 25.5% y-o-y, respectively. The strong performance was driven primarily by higher hot-rolled coil (HRC) production and resilient demand from the construction sector, supported by increased public investment, ongoing infrastructure development, and improving domestic demand amid a gradual recovery in the real estate market. However, downstream flat steel products remained under pressure, with coated steel and cold-rolled coil (CRC) continuing to face weak global demand and mounting trade protection measures.
Crude steel production, consumption record robust growth
Vietnam’s crude steel production reached 15.18 million tonnes (mnt) in H1CY’26, up by 26.9% y-o-y. Steel consumption also increased by 25.5% to 14.81 mnt, reflecting sustained improvement in domestic market activity.
Steel exports totalled 1.70 mnt, registering a comparatively modest 5.3% y-o-y increase, indicating that domestic demand remained the primary driver of the industry’s overall growth during the period.
HRC emerges as key growth driver
The HRC segment recorded the strongest performance among all steel products in H1CY’26, contributing significantly to the industry’s expansion.
HRC production surged by 41.9% y-o-y to 5.40 mnt, while sales increased by 36.8% to 5.34 mnt. Meanwhile, HRC exports jumped 62.2% y-o-y to 758,000 tonnes (t), reflecting healthy export shipments alongside strong domestic demand.
Construction steel maintains healthy momentum
Construction steel also registered robust growth during the first half of the year, supported by ongoing infrastructure projects and improving construction activity.
Production rose by 19.3% y-o-y to 7.69 mnt, while sales increased by 15.1% to 7.64 mnt, underscoring sustained demand from the domestic construction sector.
Finished steel output expands despite weakness in downstream flat steel
Vietnam’s finished steel production increased by 15.1% y-o-y to 18.21 mnt in H1 CY’26, while sales rose by 14.2% to 17.95 mnt. Despite the overall growth, performance across downstream flat steel products remained mixed, with coated steel and CRC continuing to underperform.
Coated steel production and exports decline
Production of coated (plated) steel declined by 14.4% y-o-y to 2.36 mnt, while sales fell by 9.5% to 2.26 mnt. Exports dropped more sharply, declining 29.4% y-o-y, reflecting subdued overseas demand and a weaker export market.
CRC output and sales remain under pressure
CRC production stood at 1.48 mnt in H1 CY’26, down by 6.2% y-o-y, while sales declined by 3.6% to 1.30 mnt.
According to market participants, the continued weakness in coated steel and CRC was largely attributed to slowing global steel demand and the growing number of anti-dumping and other trade remedy measures imposed by major importing countries on Vietnamese steel products. These factors continued to weigh on export-oriented flat steel producers during the period.
Infrastructure spending and property sector recovery drive growth
Industry participants attributed the strong performance of Vietnam’s steel industry in H1CY’26 to higher public investment, increased infrastructure construction, and a gradual recovery in the domestic real estate market. These factors strengthened domestic steel demand, supporting higher crude steel production and consumption while partially offsetting the weaker performance of export-oriented flat steel products.
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