Steel News

According to Euroactiv, the Czech Republic recently requested the European Union to exempt Russia from import sanctions because the country couldn’t find alternative steel sources of supply. Prolonged shortages could cause severe damage to the manufacturing industries in the Czech Republic.1. The Czech Republic's industry heavily affected by the lack of Russian steel supplyThe EU imposed a ban on importing Russian iron and steel from March 2022 in response to the conflict between Russia and Ukraine. Accordingly, the European Commission (EC) directly targets Russian steel manufacturers by removing the protection mechanism for steel products imported into the region.Currently, the Czech Republic mainly imports heavy steel plates from Russia's Novolipetsk metallurgical mill until the contract expires at the end of 2024. The total steel consumption in the Czech Republic is estimated at around 500,000 tons per year, distributed to important industries such as construction and automobile manufacturing.Jozef Sikela, the Minister of the Czech Ministry of Industry and Trade, stated to the press “In the current situation of the construction industry, such as the construction of bridges, we cannot do without steel”. The Czech government has sent a request to the European council to exempt the ban on importing heavy sheet steel from Russia.Despite efforts to find alternative solutions for steel supply apart from Russia, they haven't found suitable partners yet. Currently, there are only a few heavy steel plate manufacturers in the world. The government of this country also contacted a number of Chinese factories but was unsatisfied with their product quality and supply capacity.According to the Czech Ministry of Commerce, the government is looking to ask the EU for an exemption from the ban on Russian steel import until 2028. Besides the Czech Republic, countries such as Italy and Belgium are also pushing the EU to lift restrictions on Russia's steel supply.Recently, the EU has tightened restrictions on importing iron and steel products from Russia by requiring importers to prove that their raw materials don't originate from Russia.Facing European sanctions, not only iron and steel but also products such as coal and crude oil are also significantly affected. This forces Russia to boost steel exports to other markets like Türkiye or other countries in Asia by competing on price with China.2. Solution to import Vietnamese steel to replace supply from RussiaCurrently, Vietnam is in the top 13 countries with the largest crude steel output globally, so it is fully capable of exporting large volumes with 100% Vietnamese input materials. In particular, Vietnam's largest steel corporations such as Hoa Phat, Formosa, Nam Kim,... can meet customers' steel standards and technical requirements.According to statistics from the General Department of Customs, as of October 2023, Italy is Vietnam's largest steel import market with 1.35 million tons, an increase of 128%. In addition, the rate of steel exports to the EU market also grew positively over the same period in 2022. According to the European Steel Association (EUROFER), Vietnam accounted for 8.1% of the total amount of finished steel products imported into Europe by the end of August 2023. Another positive signal for Vietnam's steel industry is that the proportion of Europe importing finished steel products from Turkey, China and India decreased while imports from Vietnam increased by 15%.The above data has proven that Vietnam is one of the heavy steel plate import markets that the Czech Republic can consider. In the context of the prolonged conflict between Russia and Ukraine and EU sanctions showing no signs of lifting, proactively finding new sources of supply to stabilize production is urgent. Vietnam has advantages in quality, price, trade defense measures, political relations,... helping Czech importers benefit better than other markets.Above is the latest information about the steel import situation of the Czech Republic in particular and the EU in general. If you need to learn about the market, products and import of Vietnamese steel, please contact MRS Steel via Email vanloc@mrssteel.com.vn for the most thoughtful support.

Russian galvanized steel has created tremendous competitive pressure in the European market. This forces the EU to apply trade remedies to ensure the development of the European Union bloc.Russia is hit with anti-dumping duties by the EURussia is the world's 3rd largest steel exporter, with annual steel exports reaching 28 million tons. In the Europe market, Russia is currently the second-largest supplier of steel to Europe after Turkey. The excessive export of galvanized steel to Europe is said to be the act of destroying competitors and expanding the market, which is an act of unfair competition and should be prevented. There have been lawsuits alleging that galvanized steel products are dumped from Russia on the European market, affecting the region's steel market economy.The European Steel Industry Association (Eurofer) initiated the investigation after receiving a report from Commodity Insights. According to the lawsuit, Europe's average galvanized steel production remained stable from 2017 to 2019, but prices remained higher than those imported from Russia. However, in the period from 2019 to 2020, EU steel production decreased by 10%, mainly due to the impact of cheap Russian steel flooding the European market. This makes the EU steel market volatile, and domestic steel enterprises suffer a decline in output and revenue.From January to December 2020, the EC opened an investigation into the imports of galvanized steel products from Russia into EU countries to determine whether these products are being dumped and whether such imports cause harm or damage to EU domestic steel producers. The products investigated fall under HS codes 7210410020, 7210410030, 7210490020, 7210490030, 7210610020, 7210610030, 7210690020, 7210690030, 7210908092, 7212300020, 7212300030, 7212506120, 7212506130, 7212506920, 7212506930, 7212509014, 7212509092, 7225920020, 7225920030, 7225990022, 7225990023, 7225990041, 7225990092, 7225990093, 7226993010, 7226993030, 7226997013, 7226997093 và 7226997094.The EC determined that Russian galvanized steel products had a dumping margin of between 2.4% and 39.8%. The fact that galvanized steel products are imported from Russia and dumped in the EU market makes domestic manufacturers unable to sell their products, putting pressure on the national economy.Accordingly, on August 12, 2022, the EU imposed an anti-dumping order on galvanized steel products from Russia after concluding this investigation. The EU imposed anti-dumping orders on galvanized steel products originating from Russia after the conclusion of this investigation. Russian steel mills will be subject to specific duties, as follows: Anti-dumping duties on steel from Magnitogorsk Metallurgical Plant amounted to 36.6%, Novolipetsk Metallurgical Plant to 10.3%, Severstal to 31.3%, and other Russian enterprises to 37.4%.Vietnam - An alternative to RussiaMost EU countries import steel from Russia, EU anti-dumping duties on Russian galvanized steel disrupted the EU steel market, affecting supply in other industries. The EU and Vietnam share the same EVFTA trade agreement, which is an opportunity for EU countries when importing steel from Vietnam. The joint trade agreement helps EU countries avoid being subject to import duties when importing galvanized steel originating from Vietnam. This helps countries in the EU import quality steel at a more reasonable cost than importing steel from other countries.As one of the significant steel exporters in the world today, the prolonged conflict between Russia and Ukraine directly affects global raw material resources, including the steel industry. The shortage of steel supply from Russia will cause steel prices in Europe to rise, especially as many steelmakers in Europe have had to reduce capacity because of soaring energy costs. This is also a condition for Vietnamese steel enterprises such as Hoa Sen Group, Hoa Phat Group, Nam Kim Steel... boost the export of galvanized steel to this potential market, replacing the gap left by Russia. 

Russia and Ukraine are accusing each other of the collapse of the Nova Kakhovka hydroelectric dam in the Kherson region at dawn on June 6, causing widespread flooding and threatening thousands of people living there. Sources said the blowing up of the hydroelectric power plant severely impacted steel production in Kryvyi, where AecelorMittal's Ukraine steel mill is located. Should the EU's steel market import Vietnamese products to solve the supply shortage?1. Russia and Ukraine accuse each other of the hydroelectric dam in KhersonAccording to Russia's media, the Ukrainian military carried out an airstrike on the Kakhovka hydroelectric power station with the Olkha multiple rocket launcher system. Russian Defense Minister Sergei Shoigu also accused the Ukrainians of attacking the hydroelectric dam in Kherson to hinder the advance of the Russian army.The 30m high, 2 miles (3.2km) long dam was built in 1956 on the Dnipro River as part of the Kakhovka hydroelectric power station and included a reservoir of 18 km3 of water. It is considered the primary source of water for the Crimean peninsula, the Zaporizhzhia nuclear plant, and ArcelorMittal.Meanwhile, the Ukrainian side also accused Russian forces of blowing up the Nova Kakhovka dam, which not only caused massive flooding in dozens of villages and cities, affecting thousands of civilians but certainly also created an ecological disaster in southern Ukraine for many years. Ukrainian President Volodymyr Zelensky called the collapse of the Kakhovka dam an act of "environmental destruction" and said the incident would not affect Ukraine's plans to retake territory from Russian forces.Faced with escalating tensions, on June 6, the United Nations Secretary-General Antonio Guterres also stated, "Attacks against civilians and critical civilian infrastructure must be stopped immediately. We must act to ensure accountability and respect international humanitarian law.""We express great concern about the destruction of the dam at the Kakhovka hydroelectric power station," China's ambassador to the United Nations said. The blowing up of the hydroelectric dam on the Dnipro River not only endangers the Zaporizhzhia nuclear power plant but also disrupts the steel supply to the relevant regions.On the same day, the European Union (EU) offered to assist Ukraine in overcoming the consequences of the disaster so that people could soon return to everyday life and stabilize production.2. The world steel industry was affected after the collapse of the Kakhovka damBesides the severe damage to agricultural activities and water supply infrastructure for residents, experts are also concerned about ArcelorMittal Kryvyi Rih, as steel production mainly depends on Lake Kakhovka. According to the latest reports, Ukraine's AMKR mill has restricted water consumption and suspended some metallurgical, crude steel production. It is expected that it will take about 3-4 days to assess the damage and plan to restore average production.ArcelorMittal is one of the world's largest steel corporations, estimated to be able to produce about 6 million tons of crude steel and other products per year, such as coils, rebars, and commercial steel bars for Ukraine. Three steel producers in regions under Ukraine's control - ArcelorMittal Kryvyi Rih, Kamet Steel, and Zaporizhstal - are currently operating at an average capacity of 50-60%, producing a total of 13.5 million tonnes of steel annually. The wars and conflicts between Ukraine and Russia will inevitably increase energy costs in Europe, leaving steel mills with no choice but to increase the selling price of their products. Many customers in the European market also stopped trading with these two countries due to the sudden and out-of-control price increase. A steel mill in Central Europe complained overnight that the cost of natural gas had increased by 55%, so it was forced to cancel purchases to avoid economic damage.3. Kakhovka hydroelectric dam failure: How does it affect Vietnam's steel industry?Vietnamese steel will benefit from the EUIn the context of the crisis between Russia and Ukraine, the prices of goods and raw materials, including coking coal, have increased sharply, affecting input costs for steel production and disrupting steel supplies worldwide. Russia and Ukraine are both major steel exporters, especially in the European market (accounting for 15% of the market share), along with Ukraine and Belarus, which account for 38% of the market share of steel exports to the EU. Therefore, experts say the escalation of Russia-Ukraine and the recent blowing up of a hydroelectric dam will lead to a sharp supply shortage.However, this will create opportunities for steel exporters from other markets, including Vietnam. The sharp increase in steel prices will help countries with low steel production costs, like Vietnam.The proportion of steel exported to the EU increasedAccording to the Vietnam Steel Association (VSA) report, the EU ranked third in Vietnam's steel import volume, accounting for 13% of the proportion (equivalent to 1.6 million tons) in 2021. This figure increases by more than 10% with 2020 (2.86%). The signing of the Free Trade Agreement between Vietnam and the EU (EVFTA) helps Vietnam enjoy many incentives in terms of duty rate and 0% anti-dumping duty. This has created a good premise for the EU to boost the import of cheap and quality steel in Vietnam.Above are the latest news about the Nova Kakhovka hydroelectric dam blowing up between Russia and Ukraine and the forecasts affecting the steel industry. For any information and needs to learn about Vietnam's steel market, please get in touch with MRS Steel via Whatsapp: +84 76 911 2358 for the best support!