Steel News

According to the latest data from the General Department of Customs of Vietnam, Vietnam's scrap steel imports volume in the past November unexpectedly reached 392,189 tons, a 25.8% increase compared to the previous month (over 312,000 tons of scrap in October). Cumulatively, in the 11 months of 2023, the total imported scrap amounted to 3.87 million tons, experiencing a slight decrease of 2.2% compared to the same period last year (3.96 million tons).Japan remains be the largest supplier of scrap steel to Vietnam in 2023Japan has consistently maintained its position as the primary provider of Vietnam scrap steel imports since 2018. In November alone, Japan supplied Vietnam with 212,438 tons of scrap steel, a remarkable increase of 241.4% compared to the same period last year. For the cumulative 11 months of 2023, the imported scrap volume from Japan reached over 1.436 million tons, constituting more than 40% of Vietnam's total scrap steel imports. In comparison to the same period last year, the import volume for the first 11 months of this year increased by 16%. Notably, Vietnam has focused on sustaining and enhancing its supply of scrap steel from Japan, despite the upward trend in scrap steel prices from Japan, which, as of December 2023, has reached $348 per ton in export prices.The imported scrap steel volume of Vietnam from January to November 2023Besides Japan, the United States stands as the second-largest market with a consistently high volume of scrap steel imports each month. Specifically, in November, Vietnam imported 48,515 tons of scrap steel from the United States, marking a 30.9% increase compared to the same period last year. Overall, for the first 11 months of 2023, the import volume of scrap steel from the United States reached 874,693 thousand tons, showing a slight 3% increase compared to the same period in 2022.Additionally, in the list of primary suppliers of scrap steel to Vietnam in November, Hong Kong and Australia were also notable contributors, with volumes reaching 38,874 tons (a 49% increase compared to the same period) and 9,265 tons (a remarkable 241.4% increase compared to the same period last year), respectively. In the first 11 months of 2023, Hong Kong's total export volume of scrap steel to Vietnam reached 377,303 tons, experiencing a slight 1.2% decrease compared to the same period last year. Similarly, Australia's supplied volume of scrap steel to the Vietnamese market for the first 11 months reached 236,266 tons, reflecting a 16% decrease compared to the same period.The demand for Vietnam’s scrap steel imports is expected rise in DecemberThe unexpected surge in scrap steel imports has been surprising, given that Vietnamese steel producers have largely maintained stable scrap imports over the past 10 months due to a prolonged slowdown in the domestic real estate sector. While some factories have reduced capacity and prioritized domestic scrap sourcing, larger-scale facilities continue to require substantial raw material imports. These factories anticipate a resurgence in steel demand after the lunar holiday, contributing to the anticipated growth in scrap steel imports in December. Another factor contributing to the increase of Vietnam's scrap steel imports comes from the country's recent open foreign policy. Many steel items, especially imported scrap steel, have seen a significant surge, partly to meet the needs of Vietnamese manufacturers and also due to the advantages of enjoying a 0% tax rate coupled with the removal of trade protection measures.The substantial increase in import demand has positioned Vietnam as a significant player in the global scrap steel import market this year. This strategic move not only helps meet domestic demand, especially for large-scale steel plants requiring extensive raw materials to maintain production and capacity stability, but also serves as a strategy to strengthen Vietnam's position in the international steel market. Through this approach, Vietnam can demonstrate its strength and competitiveness in the field of raw materials and steel production.

In November 2023, both production and consumption in Vietnam's steel industry experienced growth. Specifically, nationwide steel sales reached over 2.5 million tons, marking a 30% increase compared to the same period last year and reaching the highest level since the beginning of the year. Meanwhile, finished steel production reached 2.4 million tons, reflecting a 34.4% increase compared to the same period.The Vietnam Steel Association (VSA) reported an improvement in the consumption of finished steel in the domestic market in November compared to the previous month and the same period last year for most steel manufacturing and trading enterprises. In particular, sales of various steel types reached over 2.5 million tons, up 13% from the previous month and 30% compared to the same period in 2022. The growth in steel consumption has been consistent over several months, signaling a recovery for the steel industry. Meanwhile, the production of finished steel during this period amounted to 2.4 million tons, up 3% from October and 34.4% compared to the same period last year.In the first 11 months of the year, the steel industry produced 25 million tons of finished steel, down by 7.8% compared to the same period last year. Steel consumption reached 23.7 million tons, declining by 5.6% compared to the sales volume in the first 11 months of 2022. Specifically, steel exports during this period amounted to 7.4 million tons, marking a 29% increase compared to the same period.Hoa Phat, a leading enterprise in the steel industry, observed its highest sales volume since the beginning of the year. Specifically, sales of construction steel, hot-rolled coil (HRC) and steel billets reached 709,000 tons, marking a 12% increase from October. Notably, sales of high-quality construction steel by Hoa Phat during this period reached 410,000 tons, indicating a 21% surge compared to the same period last year.The company's representative stated that the domestic steel industry is on the rise due to the beginning of the construction season and is partly driven by policies encouraging the disbursement of public investment capital. According to the assessment by VSA, the sales volume of construction steel has increased, partly due to infrastructure projects such as the North-South expressway and the ongoing development of new airports, which have accelerated progress alongside several other projects.The steel industry has experienced significant price fluctuations in recent months, with steel companies continuously adjusting prices upward from November onwards. According to VSA, the consistent price hikes in steel are primarily due to the rising costs of raw materials used in steel production such as coal, iron ore, scrap steel and hot-rolled coils, showing no signs of slowing down.The selling prices of finished steel have been increasing at a slower pace compared to the rising costs of raw materials. This is one of the difficulties that the steel industry is facing.In the upcoming period, the price of this commodity is forecast to continue rising due to a narrow supply of iron ore, while construction demand is expected to increase. This will be an opportunity for the steel industry and steel stocks in 2024.

Scrap steel is an important raw material used in production, especially with the recent strong trend of environmental protection. In 2023, the scrap steel consumption showed unfavorable indices; however, simultaneous forecasts consistently indicate the industry's recovery and growth in the coming years.Global scrap steel consumption overview 2023According to the Bureau of International Recycling (BIR), the global market for scrap steel consumption faced challenges in the first half of 2023, experiencing decreased consumption across various countries and major regions compared to the same period last year. Additionally, global scrap imports in the first half of the year decreased by 8%, totaling 27 million tons compared to 2022.The decline in global scrap steel consumption and imports is directly related to the reduction in steel production this year, as the primary purpose of utilizing scrap steel comes from manufacturing. Specifically, global steel production in the first half of the year decreased by 1.1%, reaching 943.9 million tons. Significant regions experienced even more negative indices, notably with EU steel production dropping by 10.9% from January to June, and North America showing a 3.5% decline.Despite a 2.9% decrease in the utilization of scrap steel, China remains the largest consumer of scrap steel in the first half of 2023, reaching 116.2 million tons. Similarly, the top three countries leading in scrap steel import volumes in the first half of 2023 were Turkey at 9.6 million tons (a 22% decrease compared to the same period), followed by India at 5.25 million tons and the United States at 2.5 million tons.Notably, Turkey, previously a significant consumer of scrap steel (30 million tons in 2022), experienced a 16.4% decrease in scrap steel imports in the first nine months of 2023, reaching only 14.1 million tons. Reports indicate that the majority of Turkey's scrap steel imports were sourced from the EU. However, since 2022, Turkey's consumption of scrap steel has declined due to domestic demand and challenges in flat steel exports amidst increasing inflation and a depreciating lira.Scrap steel consumption prospects in coming yearsAmidst the global steel industry's focus on reducing carbon emissions from steel production, scrap steel is viewed as a strategic raw material to achieve carbon neutrality among steel manufacturers. Using scrap steel in electric arc furnaces (EAF) is the most straightforward approach to reducing CO2 emissions.Presently, increasing investments and EAF usage signify optimistic future consumption trends for global scrap steel. The current percentage ratio between basic oxygen furnace (BOF) and EAF steel production stands at 70/30. However, predictions suggest a shift to 60/40 by 2030. The EU is preparing to include scrap steel in the list of strategic raw materials in the green steel production trend. According to the International Rebar Producers and Exporters Association (IREPAS), EAF proportions in steel production in Europe, currently at 43.7%, are anticipated to significantly increase in the next 3-5 years.China also aims to enhance scrap steel utilization in production to reduce reliance on imported iron ore and lower carbon emissions. According to the Ministry of Industry and Information Technology (MIIT), the country could achieve EAF capacities of 100-200 million tons by 2030. The growth in scrap steel consumption is estimated to surge, from 260 million tons in 2022 to over 350 million tons by 2030.As of now, the EU remains one of the largest exporters of scrap steel, with approximately 9 million tons exported in 2023. However, some viewpoints suggest that the shifting production trends among European steel suppliers may transform the region into a primary scrap steel importer within the next 5 years. This could increase the demand for imported scrap steel to serve new production processes, transitioning the region from an export-driven role to a scrap steel importer.It is evident that in the near future, most countries will prioritize domestic scrap steel consumption rather than exports. However, current scrap collection rates fail to meet annual production needs, prompting countries to compete in accessing scrap steel sources through recycling initiatives or imports from other nations. This trend could simultaneously create new opportunities for countries to advance recycling industries and establish cleaner and more efficient steel production processes in the future.

India's target to double its steel production capacity to 300 million tons by 2030 may face difficulties due to recent restrictions on scrap steel exports by the European Union. This move could directly disrupt the Indian steel industry as the country hasn't developed a strong recycling industry and relies heavily on imported scrap steel for production.The production capacity of Indian steel industry facing limitations by shortage of scrap steel supplyIndia is currently the world's second-largest producer of crude steel after China, with 124.7 million tons of crude steel in 2022. In a conference in February 2023, the Indian government set the target of increasing steel production capacity to 300 million tons by 2030. "The current 15% scrap usage will increase to nearly 25% within the next 5 years, meaning that the proportion of scrap used in steel production will increase to 50%," as stated by the Indian Steel Minister in the MRAI Material Recycling Conference 2023.Analysts predict that India's ambitious production growth target will lead to a significant demand for scrap materials. Specifically, by 2030, the demand for scrap materials is projected to reach 65 million tons per year, while the domestic scrap supply at that time is only 59 million tons per year. This raw material shortage will force the Indian steel industry to rely more on imported scrap materials to fill the gap.Forecast chart of India's scrap steel consumption demand until 2030Therefore, in 2021, the government attempted to expand the scrap steel industry by utilizing vehicles. Specifically, vehicles over 20 years old had to undergo emissions tests, and if they failed, they were recommended for disposal and used as a source of scrap steel for the manufacturing industry. Implementing the policy of collecting scrap steel from vehicles could provide the steel industry with an average of 6 million tons per year. While the policy may address recycling supply needs, in the long term, it has not achieved effectiveness because most recycling infrastructure in India is still in its early stages, and there are still very few old vehicles available for disposal.The new challenge comes from the import of scrap steelTo enhance the supply of scrap steel for production, the current import plan is considered the most feasible approach while the number of steel recycling plants in the country is being limited. In 2022 alone, India spent over 12 billion USD on importing metal scrap, and within the next 5 to 6 years, India is expected to become the world's largest importer of scrap steel, with imports reaching approximately 20 million tons by 2030. Currently, India is ranked as the second-largest scrap steel importer in the European Union, as well as in the United States, Asia, and the Middle East.Top Indian exporting scrap steel countries in the first 6 months of 2023However, India's ambitious import plan to expand steel production is facing several challenges. The European Union, a significant market for supplying scrap steel to India, is considering imposing restrictions on the export of metal scrap to reduce emissions and protect the environment. Additionally, major scrap steel exporters like the United States, Asia, and the Middle East are also contemplating export restrictions to preserve this valuable resource. Import barriers for scrap steel have hindered the Indian steel industry’s target to double its steel production capacity, forcing steel producers to search for alternative supply sources.The Indian steel industry is confronted with numerous challenges in addressing the scrap steel supply issue due to strict scrap steel export policies from the European Union. Nevertheless, the country is working on improving its recycling capacity by building a series of steel recycling plants starting in 2021. Although there are still many obstacles to increasing production capacity, India continues to seek new opportunities to expand its steel industry.In recent years, trade relations between Vietnam and India have been strengthening, particularly in the steel sector. India is considered a potential export market for Vietnam, with increasing demand for scrap steel and hot-rolled coils (HRC). In the first 9 months of 2023, India unexpectedly became the second-largest importer of HRC from Vietnam, with a production volume exceeding 386,000 tons. Based on infrastructure construction needs and the ambition to secure raw materials for production from India, the Vietnamese steel industry expects to expand its export market in the future, especially with HRC being one of its key products.

In recent years, Vietnam has promoted the use of clean energy sources in steel production in order to develop an eco-friendly economy. Therefore, the steel scrap has long been applied in production by many domestic manufacturers. The role and applications in the recycling process of scrap steel have brought positive effects to the environment, contributing an important position to the trend of sustainable development and production.The role of scrap steel in the trend of using renewable energyScrap steel is the term used to describe products that have reached the end of their life cycle and they are not usable for longer. The name "scrap" will make many people think that they are discarded items, in fact they are a valuable source of raw materials for the steel production process at factories.Scrap steel is considered an essential source in the trend of green production because they will not cause any pollution risks to the environment. Compared with the method of producing steel from iron ore, scrap steel plays a major role in reducing emissions from factories when 1 ton of scrap steel can reduce 1.5 tons of CO2, 1.4 tons of iron ore and 740 kg of coal.They come from a variety of sources, some from steel mills, where shipments are damaged or some failed products because they don't have any value to the transaction. Others can appear in the wreckage of used cars, old boats or from the structure of buildings.Process of recycling from scrap steelScrap steel is an iron containing metal with the rate of iron is 97% and thanks to this high percentage, many manufacturers have processed and melted them to create new types of steel products. The process of recycling steel often goes through many complicated stages to ensure the quality of the output steel products.Step 1: Collecting all types of scrapsThe first step in recycling steel from scrap is to collect all types of scrap and gather them at a certain location. Scrap sources are often present around people's daily life like an old table or chair, refrigerator, bicycle can also be considered a valuable source of  materials in steel production.Step 2: Conduct sorting scraps into specific groupsAfter gathering all the scraps in one place, the handler will use a magnet to draw iron and magnetic devices from the general mix. Scrap steel will be divided into 3 categories including metal scrap that is discarded at the factory or previous workshops, the type of scrap is waste generated in the steel production process, and final scrap comes from household items.Normally, scraps that have sources from factories can be directly put into the recycling process without having to go through any cleaning steps. Meanwhile, scrap steel from household items will be treated to remove other impurities to achieve the required cleanliness. The cleanliness must meet the criterias such as no dirt, non-ferrous metals, steel is not rust and excessive corrosion.Step 3: Crush and shred the scrapsIn order to make it more convenient for scrap smelting, the manufacturer will perform the crushing and shredding step with specialized machines including cutters, flatteners and crushers. The smaller the scraps, the faster the heating and melting process will be promoted.Step 4: Heat up scrapsBased on the properties of each type of scrap steel, the manufacturer will put them in different furnaces. The average temperature of a furnace can be up to 3000 degrees Celsius, this is the ideal temperature enough to evaporate the zinc and aluminum components contained in the previous steel.The furnaces are often equipped with a liquid stirrer to assist in maintaining the temperature in the heating process as well as controlling the consensus of the liquid. The heating process will take place for several hours depending on the amount of scrap steel poured in.Step 5: Filter the residueSedimentation is a necessary stage that helps to remove excess impurities present in the steel to ensure that the final steel product obtains high quality and does not appear to have any contaminants. Some common methods of filtration include using electrolysis to extract impurities from steel, another way to remove impurities from metal can be mentioned as running a magnet over a molten metal solution.Step 6: Carry out the solidification methodAfter the steel solution has been purified to remove excess substances, the manufacturer will now move them on conveyors to cool and solidify the metal. Also in this stage, steel will be formed into billet bars or flat steel.Finding the scrap steel collector for your recycling projectTheoretically, scrap steel brings positive aspects to businesses, in fact, scrap steel sources are considered to be rare. This scarcity comes from the average lifespan of a steel product is up to tens or even 100 years. This means that these sources are not always available at all times while the demand for steel is increasing day by day.In recent years, Vietnam has been the destination of millions of tons of scrap steel when the domestic market often buys and imports foreign scrap steel sources. In addition, China's policy about banning imported scrap steel has unintentionally caused scrap sources to rush into Vietnam more than ever. In the face of the scarcity of scrap steel in many places in the world, choosing reputable scrap steel collectors in Vietnam will be the right direction for your production projects.If you are in need of finding and purchasing scrap steel sources, MRS Steel is ready to be present and accompany you. We are not a small unit specializing in scrap collection but a business specializing in providing reputable steel solutions in the market, we are able to bring you quality scrap steel at an affordable price. Contact us immediately via Whatsapp:+84 76 911 2358 or email vanloc@mrssteel.com.vn for detailed advice.