Posted on 16 Jul 2025
A drop in galvanized steel production is anticipated in Vietnam this year due to weak demand from overseas, Kallanish notes.
Global uncertainties, higher US import tariffs and increased trade remedies against coated steel from Vietnam have hurt galvanizers in the country, who have reduced production.
Last year, Vietnamese galvanizers were operating at around half of rated or design capacities, industry sources estimate. Production of metallic coated steel amounted to around 6.8 million tonnes in 2024.
Production could come down by 30-50% further this year, industry sources in Vietnam say. “We cannot do anything else except implement more production cuts,” a manager with a reroller in southern Vietnam says.
In the next two-three months, leading reroller, Nam Kim Steel, is scheduled to start operating a new cold rolled annealing line of 1.2m/year at its existing Phu My plant located in Ba Ria-Vung Tau province. It also plans to install a galvanizing line of the same capacity in 2026, sources say. The company previously announced that the expansion project will involve an investment of VND4,500 billion ($172m).
Nam Kim currently has a 1mt/y design capacity of cold rolled, galvanized, galvanume, pre-painted coil and black pipe products.
Source:Kallanish
