Steel and Corrugated Iron industry Prospects

In general, 2020, the Steel-and-Corrugated Iron Industry was under a negative impact caused by Covid-19 Pandemic. The construction activities were stagnant, which means a reduction in consumption rate, and a scarcity in demand.  From the third and forth quarters, the consumption volume shows a slight increase when the pandemic is gradually put under control, projecting a burst in consumption rate in 2021.

Government Promotion in Public Investment

The first bright spot for the Steel and Corrugated Industry this year comes from the Government’s determination in creating forces to push the public investment forwards. This investment source is considered to be the largest motivation for economic growth. Public investment is evaluated to have the strongest development in the last 10 years, reached 79,3%, more than 34% comparing with 2019. This phenomenon will be a good background for economy recovery in years to come.
 

Government enforces the Public Investment

Following the trend of strengthening the development of public infrastructures in 2021, the Construction Materials Industry, generally, and the Steel-and-Corrugated Iron Sector, in particular, will gain enormous benefits. Noticeable schemes in 2021 include North-South Highway, Long Thanh International Airport, My Thuan - Can Tho Highway, projected in May 2021, 2 parts of National Highway No.45 - Nghi Son và part of Nghi Son - Dien Chau, which belonged to North-South Highway in the East, will be begun.

Public Investment will certainly encourage the construction of industrial plants. International companies will have their grounds to boost the construction of the manufacturing factories. This also means the jump in the volume of factories, prefabricated house with iron frame leading to the rise in the consumption of Steel and Corrugated Iron.

Remarkable growth in Real Estate and Housing Market

The next foreseen prospect for the Steel Industry in 2021, according to the experts, is the positive signs coming from the Real Estate and Housing Industry. This is a great signal to stimulate the growth of the Construction Materials Sector after the hardship resulting from the Covid-19 outbreak. Many housing and building schemes gained their permission for implementation in the last phase of 2020 and early 2021. Public Invested Apartments  for workers & administrative executives are also in range of investment. 
 

Strong growth in Real Estate Market 2021

In addition to that, recovering the incidents caused by floods and landslides in the Mid-Vietnam means to use a great amount of materials to meet the demands of building and fixing the facilities. Reviewing on the consequences caused by the natural disasters in 2020, investors, contract holders, or house owners will pay more attention on corrugated iron and steel products that have good quality and adaptability to the regional environment for building and roofting.  Hence, the quest for prestige brands is inevitable and is considered as a force to the market in 2021.

Export volume Increase due to the Re-opening of International Parties

The end of 2019 and the first quarter of 2020 witness a freeze in all logistic activities due to the intense situation of the pandemic leading to the shut down of commercial and trading routes between nations. The export sector gains back its ground in the second quarter 2020 in responding to the recovery in needs and the disruption of supply chain. In details, the sum of export volume from Steel and Corrugated Iron Products rises 48% comparing to itself in the first 11 months of 2020 (stated General Department of Customs).
 

Export - Import of Steel and Corrugated Iron prove its potential in 2021

Export volume gain massive supports from the stimulation in constructing and building architects in many countries, especially from China, as a respond towards the stagnation of private business. Another indirect impact roots from the recovery of Automobile Industry. The affect of the pandemic leads passengers switching their habits of using public transportation to personal vehicles, which means a great consumption in metal and iron is in demand. The development of Logistics, the gradual stability of manufacturing, and rising demands from many countries are resonances that boost the development of Steel and Corrugated Iron in 2021.

To sum up, the Steel and Corrugated Iron are gaining high appreciation in the long term, when its growth may gain supports from the recovery of the Real Estate and Housing Market, FDI Funding, and public investment in following years. Besides, some Steel manufacturers can take maximum the advantages of the HRC supplies, which are also in shortage, and maintain their growing speed in profit over 10% projected in 2022.