Steel News

On June 2, 2023, the Safeguards Committee of the World Trade Organization (WTO) announced that the European Union would continue to extend safeguard measures in the form of tariff quotas (TRQs) for some steel products imported from Vietnam for an additional year. The EU decision is in effect from July 1, 2023, to the end of June 2024.According to the notice of the WTO, the European Union accused cheap steel products imported from abroad will continue to cause severe damage to domestic producers. Therefore, they asked to apply trade remedies because the EU's domestic steel industry has taken many measures to deal with the increase in imported steel products into the domestic market.Based on the Commission's Implementation Regulation 2021/10291, the EU issued a Decision to extend safeguard measures applied to imported steel products through tariff quotas. Accordingly, the European Commission allocates specific and common quotas for each country for the remaining countries. Imports over the percentage are subject to an additional 25% duty.Vietnam, along with other countries, has exported steel to the EU market subject to quarterly tariff quotas for eight types of steel, including hot rolled steel plate (group 1), electrical engineering steel plate (group 3B), galvanized steel plate (group 4A, 4B), organic coated steel plate (group 5), stainless cold-rolled steel plate (group 9), large steel pipes (group 25B) and other steel pipes (group 26). For other groups of steel products, Vietnam is exempted from safeguard measures according to the criterion that a developing country with a steel import market share of less than 3%.  The European Union is one of the regions that regularly applies trade remedies to imported goods globally. According to WTO statistics, by the end of June 2022, the EU had investigated 644 cases and applied 408 trade remedies. Currently, the EU only uses safeguard measures related to steel products for Vietnam. In the next stage, Vietnamese manufacturers need to contact EU and Vietnamese authorities to fulfill their obligations to declare, cooperate and provide sufficient information to protect their rights tariff rate, not allowing steel products outside the above eight groups to be determined to exceed 3% of the market share.Previously, on March 26, 2017, the European Union launched an investigation into some imported steel products. On July 18, 2018, the EU decided to apply a temporary safeguard measure on steel products classified under 23 product categories within 200 days. The out-of-quota tariff rate is 25%, depending on product type and origin.On July 1, 2020, the non-taxable quota was increased by 5%, effective until June 30, 2021. With the expiry of the term three years, the EU relaxed this measure by increasing the tariff rate quotas for all groups to 4% from July 1, 2021, to June 30, 2023. On February 2, 2019, the European Commission imposed official safeguard measures on 26 out of 28 product categories under investigation. Before exporting to the EU, the Vietnam Trade Remedies Administration suggested that enterprises actively control the export shipments within the remaining quota.If customers want to learn about the Vietnam steel market and import genuine steel products, please get in touch with MRS Steel via Whatsapp: +84 76 911 2358 for the best support. 

ArcelorMittal Kryvyi Rih recently halted its steelmaking and rolling operations due to water impacts following a dam failure at the Kakhovska Hydropower Plant. The production halt could affect Ukraine's steel industry in the near term. ArcelorMittal Kryvyi Rih has halted productionUkrainian steel and long steel producer ArcelorMittal Kryvyi Rih recently halted steel production and rolling activities. According to reports, the halt stemmed from the dam collapse at the Kakhovka Hydropower Plant due to suspected Russian influences. So far, no results have determined whether the production halt will affect Ukraine's steel industry prices.The plant has stopped production since June 6 and will resume operations if the water in Lake Kakhovka shows signs of decreasing. Meanwhile, blast furnaces, coke smelters, and iron ore mining operations continue to operate. The source also said that the business continues to deliver goods on schedule.The steel industry may be affected in the near futureThe dam is located on the Dnipro River in Ukraine's Kherson region. ArcelorMittal Kryvyi Rih steel mills use Lake Kakhovka's water during steelmaking and cooling. The dam collapse seriously impacted the downstream region and significantly affected steel production. However, there is no information shared about the amount of water that ArcelorMittal Kryvyi Rih consumes, but certainly, the amount of water consumed by the steel industry is not a small number. On June 7, ArcelorMittal Kryvyi Rih announced that there would be no water supply for production on June 8, forcing employees to work from home or take unpaid leave. The plant also said it would update the water supply situation daily to ensure operations could still occur.In the first 4 months of 2023, Ukraine's crude steel production decreased by 54% compared to last year. According to a report from the local steelmaking association, Ukr Metalur Prom, steel production fell from 3.93 million metric tons to nearly 1.81 million metric tons. With such a sharp decrease in steel output, the industry may increase prices soon.What opportunities exist for Vietnam's steel industry?ArcelorMittal Kryvyi Rih is stopping production due to the impact on the water supply after the dam collapse at the Kakhovska Hydropower Plant. The production stoppage means that the steel price in this market will increase. This is an opportunity for Vietnam's steel industry to export products to this potential market. With international-standard quality and a reasonable cost, Vietnamese steel will be a reasonable source for the Ukrainian steel market. Besides, the Ukrainian steel market was also affected by the Russia-Ukraine war. Several leading steel producers in Ukraine have plans to cut production output to a minimum due to delayed rail and port operations. This will create opportunities for the steel industry in other markets, typically Nam Kim, Hoa Sen, Hoa Phat, and Ton Dong A... with revenue growth mainly coming from exports to the EU market.Above is information about ArcelorMittal Kryvyi Rih's production cuts due to the impact of the dam failure at the Kakhovka Hydropower Plant. The dam's collapse led to decreased steel output, which is also an opportunity for the Vietnamese steel industry to export steel to this market. If you need to buy Vietnamese steel, please contact us here. We ensure that we provide quality steel products at a reasonable cost. 

After a long period of being in the dark, recently in May, the Vietnamese steel market regained a signal of recovery when Hoa Phat's steel sales increased 16% over the previous month.Hoa Phat's steel sales regain growth after a long period of dismalIn May, Hoa Phat Group recorded consumption of construction steel at 284,000 tons and increased 27% compared to the previous April. Hot rolled steel coil (HRC) also achieved a positive sign when reaching 243,000 tons and increased by 8% over the same period last year. This is the milestone marking the highest HRC growth of Hoa Phat since the beginning of this year, in which HRC consumption from the export market accounts for 55% of total consumption. According to the growth wave, steel pipes and galvanized steel also recorded positive signals when steel pipe reached 57,000 tons sold and it rose 12% compared to May in 2022. Galvanized steel products reached 34,000 tons sold to export and domestic markets, recording a double growth compared to May last year.Overview of the first 5 months of 2023, Hoa Phat has produced a total of 2.34 million tons of crude steel, Hoa Phat's steel sales reached 2.36 million tons, of which construction steel reached 1.36 million tons; Hot rolled coil recorded 965,000 tons, galvanized steel sold 136,000 tons and finally pipe steel sold 266,000 tons.Line Chart About The Total Sales Of Steel Hoa Phat In 5 Months 2023In addition to domestic consumption, the export market has contributed significantly to the sales volume growth for the Vietnam steel industry. In the first 4 months of 2023, Vietnamese steel has been exported to more than 30 markets, in which Italy is currently the largest steel export market in Vietnam with export volume this year increasing by 70% compared to last year.Vietnam steel industry is expected to prosper at the end of the yearThe Hoa Phat's steel sales growth is a signal that the steel industry is gradually prospering because Hoa Phat is considered as the leading force in the Vietnam steel industry. The increase in sales volume will stimulate the recovery of steel production across the country as many steel producers have cut manufacturing costs to cope with oversupply.The weakness of the real estate market has directly affected steel demand clearly. However, in the context that the world is prioritizing sustainable energy development, steel's role is increasingly appreciated. Wind turbine production projects are being initiated by many countries, including Vietnam, which is also a country that is prioritizing the development of renewable energy. The installation of wind turbines for the project will be a new consumption trend for the steel industry when 80% of a turbine volume is made of steel.Hoa Phat is currently the largest steel producer in Vietnam with a crude steel production capacity of 8.5 million tons per year. In addition, the group is also the first enterprise in Vietnam to produce hot rolled steel with a capacity of 3 million tons per year and has up to 12 different types of HRC steel grades, enough to supply many different markets. 

As part of its sustainable development plan, the World Steel Association organizes 2 significant events: "Open Forum 2023" and "Disruptive Technology Conference 2023". This will allow the steel industry to develop and strengthen its position on the economic map.1. Steel industry overview 2022In 2022, the global economy will face difficulties when inflation increases and steel-using industries grow slowly. Meanwhile, the high price of input materials in the steel industry increases production costs and decreases steel demand. Some major steel corporations worldwide have plans to close blast furnaces, such as ArcelorMittal.2022 global steel production will reach 1,878 billion tons, up slightly from 1,875 billion tons in 2019 (before the COVID-19 pandemic). China leads the world in steel production with 1,013 million tons, accounting for 54% of total output. China is followed by India with 124.8 million metric tons, accounting for 6.6% of the world. These two countries have a developed steel industry, contributing to the overall development of the world steel industry.Worldsteel forecasts that steel demand will decline 2.3% in 2022 to reach 1,796.7 billion tons after increasing 2.8% in 2021. In 2023, steel demand will recover by 1% to 1,814 billion tons. 2. Sustainable development plan of the steel industryThe sustainability of the steel industry is always a top priority for the World Steel Association. As part of the series of sustainable development plans for the steel industry, the World Steel Association organized two significant events: the "Open Forum 2023," held in Belgium, and the Breakthrough Technology Conference 2023 held in the UAE.2.1 Open Forum 2023After successfully holding the event in 2022, the 2nd Open Forum in 2023 is an opportunity to expand and develop the steel industry. The forum aims to engage stakeholders in the steelmaking ecosystem, including suppliers, equipment manufacturers, and related industries.The forum focuses mainly on climate policy implementation, transition financing, raw material requirements, energy availability, steel-using industries, and chain of custody. Development of steel products.2.2 Breakthrough Technology Conference 2023This event is organized to facilitate exchanges between researchers and engineers working in steel. The conference will be a networking platform to participate and share information and knowledge about the steel industry.The main content of the conference revolved around the production and transformation ecosystem. Includes hydrogen use (reduction, BF pumping, heating), CCUS, use of alternative carbon sources, electrification (EAF, electrolysis, heating), scrap, efficiency, and other cross-cutting issues.3. Vietnam and opportunities before the sustainable development of the steel industryThe world steel industry is growing, leading to the development of Vietnam's steel industry. With the new development trend of the world economy, the development potential of Vietnam's steel industry in the future is huge.Production capacity: Over the past time, Vietnam's steel industry has developed enormously in both production capacity and product categories. The steel industry's growth in recent years has doubled, with total production reaching around 29.3 million metric tons in 2022. With these factors, Vietnam has risen to 13th in steel output, with 20 million tons in 2022, accounting for 1.1%.Export market: Vietnam's steel products have been exported to more than 30 markets worldwide. Vietnam's main steel export markets are ASEAN countries, accounting for 26.2% of the total turnover; the EU accounts for 15.98%; China accounts for 14.12%; the US accounts for 11.57%,... Besides, the signing of a number of new-generation FTAs, such as CPTPP, EVFTA, and RCEP... has brought positive signals to the steel industry when there are new export markets with high scale and growth potential.Above is information about the sustainable development plan of the steel industry; if you want more details, please contact us here.  

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! 

In 2022, the steel industry in Vietnam suddenly entered the top 13 world's crude steel production in the world. This is an important milestone marking domestic factories have gradually become self-sufficient in input steel materials, contributing to improving the quality of steel products making conditions for Vietnam's steel exports to the world.The long developments of steel industry in Vietnam about autonomous productionBack in the 2000s, the total capacity of crude steel in Vietnam was only 300,000 tons because of the small scale's production from domestic factories and outdated equipment. At that time, Vietnamese factories had to import a lot of crude steel as well as all hot rolled coil steel (HRC) to produce steel for the market.However, since 2010, the steel industry in Vietnam has made amazing growth when the demand for steel has increased. These increases have made steel enterprises willing to spend a large amount of money on production technology and expanding business activities.Vietnam's crude steel production capacity when compared to ASEAN countries in 1990-2020Vietnam's crude steel production capacity has grown strongly since 2010, specifically, Vietnam only produced 900,000 tons of crude steel in 2005 before, but only 5 years later, this number has increased 5 times when compared to the same period before. Until 2020, Vietnam's crude steel production capability has ranked the first in Southeast Asia area, this is also considered as a preconditions for Vietnam to become one of the most potential steel manufacturers in the world.Position of Vietnam Steel Industry On The World MapAccording to WorldSteel statistics, in 2021, Vietnam's crude steel production capacity has now reached an amazing figure with more than 23 million tons and it helps Vietnam reach the top 13 countries which have crude steel production capacity in the world.Position of Vietnam's Steel Industry on the world map of crude steel productionSource: worldsteel.orgIn 2022, despite the effect's economic difficulties, Vietnam still maintains top 13 in ranking of crude steel production in the world with a total crude steel  of 20 million tons. This is a good sign for the steel industry in Vietnam between the overall gloomy economic background and the steel industry in the past year.Ranking of global crude steel production among countries in 2022Source: worldsteel.orgAccording to the latest statistics from the Vietnam Steel Association (VSA), in February, Vietnam's crude steel production reached more than 1.5 million tons. Although crude steel output in this month decreased significantly when compared to the same period last year, it is considered a sign of rise for Vietnam's steel industry when the volume in February increased by 13% when compared to last January. It can be seen that Vietnam's steel enterprises as well as the government are trying some policies and adjusting the plan flexibly to adapt to difficulties about global economic barriers, contributing to the strong recovery of Vietnam's steel industry.Solutions for Vietnam's steel importers in the middle of the market stormThe world steel market in general as well as the steel industry in Vietnam is assessed as being in recession, so what is the solution for Vietnamese steel importers when the Vietnam steel market still has problems which are from global inflation along with tight monetary policy.Before an important decision to invest in importing steel, if enterprises capture clearly fluctuations of the price along with steel cost in a certain period, it will be an effective solution for foreign enterprises to prevent some problems. In Vietnam today, MRS Steel is a reputable supplier of steel import solutions for businesses. We have a team who are knowledgeable about market prices to assist you in building a plan for buying steel from quality producers that helps you to optimize both time and cost.