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The year 2024 is expected to mark the recovery of the steel industry. Efforts to increase the disbursement of public investment capital along with promoting credit loan packages for social housing projects can have a positive impact on the steel market.Pressure from cheap Chinese steelAfter COVID-19, China gradually reopened to recover the economy. Being the country with the most developed steel industry in the world, however, the persistent situation of the real estate crisis also makes the business activities of this country's steel industry not very positive. Weak demand in the Chinese steel market in the context of the country's slowing economic growth, the real estate market not yet recovering, the electric vehicle manufacturing sector showing signs of oversupply, making steel products China continues to be exported at low prices to reduce inventory. This is a factor that puts great pressure on Vietnam's steel industry. Previously, in 2023, China exported 91.2 million tons of steel, an increase of 35% compared to 2022. China exports steel mainly to Southeast Asian countries such as Indonesia, Thailand, the Philippines, Vietnam, etc., which also puts more competitive pressure on Vietnamese businesses because these have been the main export markets of the Vietnamese steel industry for many years. China's promotion of exports has led to a decrease in steel prices, causing the gross profit margin of many Vietnamese steel manufacturing enterprises to recover more slowly than expected.The steel industry is expected to recoverIn 2024, along with the recovery of the steel industry market, profit margins of steel manufacturing enterprises will improve after a long period of suffering losses and inventory.According to a recent report from the Vietnam Steel Association (VSA), Vietnam's economy will have positive bright spots in 2023 when growth is promoted, inflation is controlled, and major balances of the economy are guaranteed. However, due to the impact of the world economic downturn, in 2023, the finished steel products of Vietnamese steel industry enterprises will only reach 27.76 million tons, down 5%. Consumption of finished steel products will reach nearly 26.3 million tons, down 3.5% compared to 2022. However, exports are a bright spot with significant growth, reaching 8 million tons, up 29% over the year. Previously, with the main export markets in the ASEAN region, EU, United States, and India,...VSA also said that it is expected that in 2024, steel industry consumption will increase by about 6.4% and steel exports will increase to nearly 13 million tons. This target is set based on the expectation that Vietnam's GDP will grow by 6 - 6.5% this year. In addition, world steel demand is expected to increase by 1.9%, reaching 1.8 billion tons in 2024, of which ASEAN steel demand is expected to increase by 5.2%. VSA said that the steel production prospects of Vietnam's steel industry will increase by about 10% in 2024 and 8% in 2025 when the demand for steel in domestic economic sectors recovers. Finished steel product production in 2024 and 2025 is estimated to reach about 28 million - 30 million tons; domestic steel consumption demand is about 22 million - 23 million tons.The business picture of steel industry enterprises has passed the gloomy period when steel prices showed signs of recovery. Businesses do not have to set up large inventories like last year. Profits of steel enterprises are gradually improving thanks to increased steel consumption and exports and reduced inventories at enterprises. With the government's economic promotion programs, including removing difficulties in the real estate sector, supporting interest rates, promoting public investment, etc., Mr. Nghiem Xuan Da, General Director of Steel Corporation Vietnam (JSC), forecasts that steel industry output in 2024 could increase by 10%.Expecting the real estate market to recover in the second half of 2024, creating demand for the steel industry, Hoa Phat plans to increase steel output by more than 10% this year. In addition, this enterprise also invests in new projects to continue to strengthen its position as the leading steel manufacturer in Southeast Asia.

In the context of inflation and global economic recession, the world's largest mining company BHP (Australia) still has uncertainty about the prospects of the steel industry due to the factor of China - the world’s largest steel producer. Below are the top 7 main reasons that make it difficult for BHP to predict the global steel market in 2024.1. High steel production and exports from China and India in 20232023 was the fifth consecutive year that China recorded crude steel output above 1 billion tons thanks to sustainable demand from non-residential. Chinese steel industry has seen strong growth in net exports with total turnover reaching its highest level in the past 7 years. Exports rose to 98 million tons in 2023, the highest since 2016.The Indian steel industry in 2023 also marked significant growth with crude steel output reaching 140 million tons, an increase of 12% compared to 2022. The Indian steel market was considered the only bright spot on the Asian steel map in 2023 amid weak demand and persistent oversupply in the region.2. Strong blast furnace usage rate in ChinaChina's blast furnace (BF) utilization rate averaged 88% in the first half of 2023 and 90% in the second 6 months, reaching 89.1% for the whole year. BHP explained the reason for the high BF rate is because:Production at electric arc furnaces (EAF) is limited due to lack of competitiveness, weak demand for construction steel, reduced scrap availability and loss of profits.Abundant steel supply in the global export marketActivity of the flat steel industry in 2023 was relatively stable with demand increasing by 2% compared to 2022, of which the second half of 2023 increased by 3.2% y/y.3. Low real profits of Chinese steel manufacturers The profit margin of steel mills in 2023 was still very low. BPH estimated margins for BF-BFO furnaces to average around $7/ton in 2022 but fell to -$6/ton in 2023.4. Stable China's steel output forecast in 2024 BHP's preliminary estimate of China's crude steel production in 2024 is in the range of 1-1.1 billion tons. However, output could still be affected by possible mandatory production cuts in China. Overall, up to now, BHP still does not have solid data on the outlook for Chinese crude steel output in 2024.5. Decline China's steel exports in 2024 BHP predicts China's net steel exports in 2024 will decrease compared to 2023 at more than 87 million tons. The reason is that Beijing aims to limit steel production, but it is unlikely to fall below 54 million tons due to China's price advantage in the global steel market.6. Uneven demand of the end-user sector in China BHP weighs in on the outlook for end-user demand for steel in China in 2024, including the pace of development, scale and structure of the housing construction recovery as well as the ratio of steel usage per unit of GDP. Currently, BHP predicts real GDP will increase from 4.5 - 5%, after growth of 5.2% in 2023. The fields of housing, infrastructure, machinery and equipment manufacturing, automobiles and construction ships, consumer goods,... continue to decline.7. China to enhance steel reservesIn the long term, BHP believes that China will increase its accumulated steel inventory by 1.5 - 1.75 times when the urbanization rate reaches about 80%. The Australian mining firm also expects China to improve living standards similar to those of countries currently on the edge of the high-income bracket by mid-century.Above is the latest news about predicting the world steel situation in 2024. Don't forget to follow and read more useful articles on the topic of Vietnamese and global steel at MRS Steel!

Turkey is planning an expansion to enhance its steel production capacity, aiming to lead Europe in the coming years.Turkey holds a prominent position in the global steel production and export market. The country's steel industry has gained recognition for manufacturing high-quality steel products and making continuous efforts to expand its capacity while incorporating advanced technologies into production. With its strategic geographical location, including an extensive Mediterranean coastline, Turkey currently produces and supplies steel primarily to the European market.The steel industry in Turkey comprises privately owned companies that continually strive for technological advancements and competitiveness in the market. The iron and steel sector is the third-largest contributor to the Turkish economy, reflecting significant development in recent years. Presently, Turkey ranks among the top 10 largest steel production countries globally. According to the World Steel Association (WSA), Turkey was the 8th-largest producer of crude steel in the world in 2022, with 35.134 million metric tons of crude steel. However, in 2023, due to the impact of an earthquake, one-third of Turkey's steel production plants had to temporarily halt steel production activities. It is known that in the last 5 years, Turkey has averaged exporting around 20 million tons of steel annually worldwide. In 2021, according to data from the World Steel Association (WSA), Turkey’s steel industry exported 22.1 million tons of steel, ranking as the 7th largest steel exporter globally. In 2022, according to the Turkish Steel Exporters' Association (CIB), Turkey's steel exports decreased to 19.6 million tons. While Turkey's steel exports increased in the first six months of 2022, they sharply declined in the second half of the year. According to the CIB, the total volume of Turkey's steel exports decreased by about 50% in the fourth quarter of 2022 compared to the same period in 2021. The main reasons for this decline are primarily attributed to the impact of the Ukraine conflict, inflation, high energy prices, and a global decrease in steel consumption. Particularly, the demand for steel imports from Europe has significantly reduced, while the EU has accounted for approximately 30% of Turkey's steel industry total steel export volume in the past 5 years.Therefore, recently, Turkey has set the goal of becoming the leading country in steel production within the EU in the near future. Alongside efforts to achieve the set objectives, the Director-General of the European Steel Association (EUROFER) emphasizes the challenges that the Turkish steel industry must confront, especially in the face of an energy crisis, high production costs, and inflation, which have added difficulties to steel manufacturing. Furthermore, the transition to carbon reduction processes is underway, and accessing non-fossil fuel energy at affordable prices is crucial for the Turkish steel industry to maintain global competitiveness. The President of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) stated that the application of protective measures for steel products could allow the full utilization of domestic capacity, enhance export opportunities and contribute to reducing the steel industry's deficit. Additionally, it is seen as an opportunity to generate added value and provide additional employment within the country. Moreover, there is hope that Turkey's steel industry will regain its position as the largest steel producer in the Middle East, with strategic steps planned for 2024 and even stronger growth expected in 2025. Alongside these aspirations, Turkey's long-term goal is to catch up with South Korea and become the world's 6th-largest steel-producing country.

In 2023, Italy's steel production output recorded 21.06 million tons of steel, down 2.5% compared to 2022. The predicted cause is the fluctuating situation in the European steel industry such as high energy costs, low steel export demand and the intense conflict between Russia and Ukraine.1. Situation of Italian steel production in 2023In 2023, domestic steel production output decreased by 2.5% to 21.06 million tons. This decline occurred in the context of falling global steel demand and unpredictable increases in fuel and raw material costs.According to SteelOrbis data, long steel output reached 11.68 million tons, down 2.9% compared to 2022 and flat steel reached 9.54 million tons, down 0.1% y/y. In December 2023, domestic mills produced 1.33 million tons, increasing output by 6.5% y/y but decreasing by 29.5% compared to November 2023. Long steel production output reached 694 thousand tons, up 5% over the same period but down 36.9% over November. For flat steel, domestic producers reached 615 thousand tons, down 3.9% over the same period and 27.5% compared to the previous month.Returning to 2022, Italy's total steel production reached 21.06 million tons, down 11.5% over the same period in 2021. Regarding long steel, in 2022, Italy reached 12.03 million tons, down 12% y/y. Meanwhile, flat steel products also decreased by 13.8% over the same period, reaching 9.55 million tons.In 2022, not only Italy's steel output decreased, but the steel industry of EU countries also experienced a significant 10.5% decline over the same period, reaching 136.7 million tons. That was the result of rising energy prices, reduced export demand and the fluctuations of the Russia-Ukraine military conflict.2. Italy increases steel imports from Vietnam to solve domestic supply shortagesAccording to data from the Vietnam Steel Association (VSA), Italy ranked 1st among the countries that imported the largest Vietnamese steel in the first 10 months of 2023. Steel exports to the EU market accounted for 24.1% of the turnover proportion, reaching 2.2 million tons, a sharp increase of 86.2% over the same period in 2022. Of which, exports to the Italian market reached 1,355 million tons, an increase of 127.7%.Importing Vietnamese steel at good prices and high quality has helped Italy partly solve the difficulty of supply shortage due to a sharp decrease in domestic steel output. In the context of an unstable war situation and rising raw material prices, predicting Italy's steel demand is still a challenging question. Importers continue to seek supplies from major steel exporting countries such as China, India and Vietnam. However, they are still subject to many constraints on the government's trade defense measures to prevent dumping, which negatively affects domestic manufacturers.3. MRS Steel - reputable and quality Vietnamese steel import support unitMRS Steel is a leading unit in the field of providing Vietnamese steel import solutions, cooperating with many large and small businesses in more than 30 countries worldwide. With more than 10 years of experience as a bridge between importers and the largest steel brands in Vietnam such as Hoa Phat, Hoa Sen, Nam Kim, Tay Nam,... MRS Steel can meet all customer requirements in terms of product specifications, reasonable costs. In addition, MRS Steel's team of experts is always ready to advise customers about the market and Vietnamese steel products thoughtfully, in detail and 24/7 via Hotline: +84 28 36 22 33 58 or Email: vanloc@mrssteel.com.vn

With positive developments in consumption output in the final months of 2023, the Vietnam Steel Association (VSA) recently forecasted that the steel industry this year may increase by 10%, driven by expectations of global steel demand recovery.The steel industry and the positive signalsThe strong recovery of the steel industry this year is established against the backdrop of negative impacts from macroeconomic conditions and the 'freeze' of the real estate market in 2023. In the upcoming year, the steel industry is forecasted to experience significant growth, leading to the recovery of profits for businesses within the sector.As we step into 2024, the internal economy displays indications of recovery, bolstered by governmental and sector-specific policies that encourage public investment. It is anticipated that the steel industry in 2024 will witness a growth of 6.4%, reaching nearly 21.6 million tons. Not only in the domestic market, but the volume of Vietnam's steel exports is expected to sustain growth due to the increasing global demand for steel. Accordingly, the export of finished steel and semi-finished products is projected to rise by 12%, reaching nearly 13 million tons. This target is set based on the expectation that Vietnam's GDP will grow by 6–6.5% this year. The increased consumption of the steel industry is largely attributed to the signs of recovery in the real estate market in the fourth quarter of 2023 and real estate projects are expected to boost sales in 2024.The steel industry relies on the market's recoveryAt present, the economy has recorded some bright spots regarding policies to remove difficulties, promote public investment and stimulate economic growth issued by the government and various ministries. Accordingly, the Vietnam Steel Association (VSA) also forecasts that the prospects for Vietnam's steel production may increase by about 10% in 2024 and 8% in 2025 as the demand for steel from domestic economic sectors recovers.The forecast for the production of finished steel in the period 2024–2025 is expected to reach approximately 28–30 million tons, with domestic steel consumption ranging from 21-22.5 million tons. The primary drivers for steel consumption stem from the gradual recovery of the real estate market. The government and various ministries are actively investing in and developing infrastructure and implementing public projects. This concerted effort is poised to revitalize the domestic steel industry, leading to a surge in profits for steel manufacturers after a prolonged period of losses and inventory challenges. Although actual steel consumption by end consumers has not fully recovered as anticipated, the price surge at the beginning of 2024 was predicted by steel industry experts since the end of 2023, when production material costs continuously increased for several weeks. With the momentum of the recovery, steel prices are forecast to continue rising before the Lunar New Year, possibly surpassing the 15 million VND per ton mark.Therefore, all enterprises in the steel industry expect the government, as well as relevant ministries and departments, to implement stronger policies to support the real estate market and promote the development of the steel market in 2024.

According to the International Stainless Steel Forum, it is predicted that stainless steel consumption will increase by 3.6% in 2024. With the stability of interest rates and inventory levels at supply chain centers, stainless steel demand in the EU is expected to recover in the second half of 2024.1. European stainless steel market situation in 2024In 2023, the EU's stainless steel industry faced challenges with reduced production due to low demand and the impact of high inflation. However, entering 2024, experts predict positive developments and a recovery in the European steel industry.The improved macroeconomic situation is considered the main factor influencing the recovery of the European stainless steel market. The Government plans to accelerate projects on renewable energy sources, especially wind and solar energy, aiming to increase the consumption of renewable energy to at least 40% by 2030. This requires a large amount of stainless steel because their characteristics and strength ensure the safety and efficiency of the project.2. The global stainless steel industry prospered in 2024In 2023, the global stainless steel industry recovered by 2.3% and this positive signal has not stopped yet as WorldSteel predicts steel demand will continue to grow by 1.7% in 2024. The consumption of flat-rolled stainless steel is expected to grow the fastest at 5.2% compared to 2023, followed by cold rolled steel and long steel with rates of 3.2% and 3.7%. respectively. The regions predicted to have the highest stainless steel consumption are Asia (excluding China) with 5.6%, followed by the EU, Africa, and China.3. Vietnam gradually becomes a global stainless steel supplierVietnam maintained its position as the largest steel producer in Southeast Asia with 23 million tons of crude steel and 33 million tons of finished steel products of all kinds shipped in 2021. Once a country with the smallest economy in Asia, Vietnam Nam has risen to 13th position worldwide in crude steel output in 2022, exporting steel products to more than 30 countries in the region and worldwide.In 2024, Vietnam will continue to promote projects to upgrade stainless steel production systems such as Senzimir rolling machines, 1300mm wide rolling technology, advanced equipment and machinery from Tenova, Danieli,... These investment efforts have helped steel products fully meet international standards such as ASTM, JIS, BS, EN,... and design and size requirements from customers.Importing goods often takes a lot of time and effort to find sources of goods, manage the transportation process and control risks, especially high-value goods such as iron and steel. To solve the above difficult problems, many customers have chosen import support units to optimize costs and time.MRS Steel is an enterprise specializing in providing solutions for importing Vietnamese steel to many large markets such as the United States, Europe, Italy, Spain,... Owning a network connecting the largest factories in Vietnam such as Hoa Phat, Hoa Sen Steel Sheet, Nam Kim, SY Vina,... MRS Steel will bring quality goods at the best prices to importers. In particular, a team of experienced market analysis, business and supply experts will support customers throughout the entire import process, warranty commitments and resolve complaints and arising problems.From predictions about stainless steel demand in Europe in 2024, factories and importers can plan their business and development in the new context. For any questions about the Vietnamese stainless steel market, importers can contact MRS Steel via Hotline: +84 28 36 22 33 58 or Email: vanloc@mrssteel.com.vn for the most detailed advice.