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The Vietnam steel market is going through a difficult period when steel prices have been adjusted along with an decrease in demand. Specifically, SSI Research has forecast that steel industry demand in the first half of 2023 may decline in the context of a weakening real estate market and tight monetary policy of the government.1. Vietnam steel market fluctuationsAccording to the assessment from VSA, 2022 is a challenging year when the decline in the domestic consumption market has affected the price of steel, and the cost of production materials is also complicated. Those changes lead to many steel enterprises falling into predicament and loss.Specifically, Hoa Phat Group Joint Stock Company achieved a revenue of VND 142,000 billion, down 5% compared to 2021. In terms of output, Hoa Phat has supplied the market with 7.2 million tons of steel (including billet, steel) construction, hot rolled coil), the result is down 7% compared to 2021.Not only Hoa Phat faced difficulties, but also other giant enterprises in the steel industry also struggled because of declining revenue. Vietnam Steel Corporation - VNSteel recorded revenue of VND 38,732 billion, down 5% compared to the previous year of 2021.2. Main Challenges For Vietnam Steel IndustryBased on the assessment of many experts, the biggest reason for the decline comes from the large fluctuation in steel price while the consumption demand is not very positive.2.1 Impact from real estate & global inflationaryThe domestic real estate market has shown signs of weakness for a long time, it caused a heavy blow to the demand of using steel as well as prices. Domestic raw materials still cannot avoid undering the pressure from global inflation, specifically the price of petrol and raw materials such as iron and steel has increased rapidly in the Vietnam market since the recovery of the Covid pandemic.2.2 Consequence of Russia & Ukraine conflictIn addition to the above issues, indirect factors related to the conflict between Russia and Ukraine cannot be ignored. Specifically, Russia is one of the world's largest in supplying coal, the dispute between the two countries has disrupted coal supply. Coal prices have increased many times when compared to the normal level, which has led to an increase in the general price of input materials for production.Unusual disparity of Russia's coal exporting volume to the Asia countries2.3 China’s “Zero-Covid” Policy Affect to Vietnam Steel MarketBesides that, China's zero covid policy also affects the domestic steel industry and raw material prices. Until now, China has always been the main export market of many domestic enterprises, so the tightening policies at the border gate have delayed many carrying trade and disrupted the transport cycle between the two countries. As a result of this delay, transportation costs have increased, which has led to an increase in the prices of raw materials.3. Prospects for Vietnam Steel MarketIn the face of these factors, the Vietnam steel market will inevitably face difficulties, but potential opportunities are still open to all businesses.Although the export situation is not very positive, the import of input materials for steel production has always remained stable when it only decreased slightly by 8% when compared to the same period last year. According to the most recent statistics, Vietnam's crude steel production capacity reaches 23 million tons/year, particularly hot-rolled coil (HRC) reaches 7-8 million tons/year. Vietnamese steel enterprises, in particular Hoa Phat Group, have invested in building large iron and steel factory complexes.Vietnam's ranking on crude steel production among countriesIt can be seen that Vietnam's steel industry is gradually becoming self-sufficient in input steel materials and they are not much dependent on foreign countries. The Vietnam steel market has had a strong development in steel production capacity and technology in recent years.Moreover, experts of finance show high expectations on the recovery of steel prices in 2023. The driving force of this expectation mainly comes from China's stimulus policy of the real estate market. This policy of China will dismantle difficulties for many businesses in the Vietnam steel market because China has always been an important export market for Vietnam.

Hot rolled coil is one of the materials with high application in industry and construction worldwide thanks to advantages such as easy processing, custom forming, low cost, easy maintenance,... MRS Steel will introduce to you the benefits of products as well as preeminent hot rolled coil production technology in Vietnam.1. What is hot rolled coilHot rolled coil is at high temperatures up to 1,700 degrees F. This is a higher temperature than the crystallization temperature of many other steels, which makes hot rolled coil products easier to apply. Products are manufactured in many different thicknesses, usually with a width of 1500mm or 2000mm and a minimum weight of 24 tons.The surface of hot-rolled coil will initially be a grayish-green color when finished, but it will eventually turn a dark brown color. Assuming that HRC is traded from Vietnam to different nations, the surface might go to gold because of the impact of ocean steam.2. How is hot rolled coil producedManufacturers can use scrap steel or iron ore to make hot rolled coil. The process of processing scrap steel is relatively simple when it is only necessary to classify the materials to transfer to an electric arc furnace (EAF) or an induction furnace (IF) to smelt into square billets and roll out hot rolled coil.More expertise and technology are required to produce hot rolled coil from iron ore. In the first step, iron ores are sintering, combined with coke coal and other additives such as lime, dolomite put into the iron furnace. Next, the liquid iron is transferred to the continuous smelting - casting - rolling combination to make the necessary steel grades and cast flat billets.  The flat billet will then be processed at the steel mill to produce the final product, hot rolled coil or cut sheet.3. Vietnam's cutting-edge technology for producing hot-rolled coilsFormosa and Hoa Phat are the two largest producers of hot-rolled coils in Vietnam at the moment. Hoa Phat Group has made an investment in the QSP hot-rolled coil factory, which is the most advanced continuous casting-rolling complex in the world. The complex of hot-rolled coil production lines includes 2 sheet billet casting machines, 2 Tuynel furnaces and a thin sheet rolling mill with a total output of 3.5 tons per year. All equipment and machinery of the factory are designed, supplied and installed by Danieli Group (Italy) with a commitment to modern thin sheet rolling lines, ensuring the highest HRC quality and minimizing energy consumable and environmentally friendly.4. Application of hot rolled coilHot rolled coil has the preeminent advantage of being cheap, easy to shape and preserve, but is not appreciated for its aesthetics, so it is often suitable for construction projects that do not require high form outside. Hot rolled coil is the main raw material for the production of cold rolled coil and widely used in many other fields and industries, such as:Manufacturing all kinds of section steel (V, U, I, H,…), welded pipe, cast steelRailways, automobile manufacturing, shipbuilding, chassisProcessing household appliances, metal door frames, tempered glass doors…5. How to import hot rolled coil from VietnamAccording to statistics of the Vietnam Steel Association (VSA), in March 2022, Vietnam exported 6,800 tons of hot rolled coil to the US, ranking fifth in the US's largest supplier of HRC. Currently, Hoa Phat Group's two hot-rolled coil production projects are Hoa Phat Dung Quat 1 has a capacity of 4 million tons per year and Hoa Phat Dung Quat 2 has a capacity of 5.6 million tons per year, including 2.6 million tons of steel billet and 3 million tons of HRC annually. Vietnam has been able to meet both its domestic and export requirements as a result of this, reducing its reliance on imports.Vietnam's hot rolled coil is made using a cutting-edge European continuous rolling casting production line that complies with stringent international standards like ASTM, JIS, and GB/T. In addition to the high quality of the product, the low cost of labor, and many other advantages, Vietnam's hot rolled coil production cost is better than that of some other exporting nations. This is also the driving force for many importers who want to buy hot rolled coil in Vietnam but still face difficulties in purchasing policy, legal and domestic customs.The current solution for steel importers from Vietnam is to find suppliers and sources to connect with the largest domestic steel corporations. This also helps you to reduce the risk of fraud, scam or avoid poor quality steel companies due to lack of understanding of domestic supply. In addition, before the continuous fluctuations of the market, the government may change import and export procedures and regulations without prior notice, making steel importers passive in updating information. Customers will save a lot of time, effort, and money on transportation if intermediary supply businesses provide prompt assistance, as well as ensure that imported goods are safe, accurate, and of high quality.Hopefully through the overview information about hot rolled coil and advanced HRC production technology in Vietnam that MRS Steel shared has helped you gain more useful knowledge. For any advice on importing Vietnamese steel in general and hot rolled coil in particular, please contact MRS Steel via hotline +84 76 911 2358 for 24/7 attentive support.

According to the new updated data from the Mexican Iron and Steel Association, HRC consumption reached 445,000 tons in March and increased 19.6% over the same period last year. The recent rise in consumption is not a new sign, it has been recognized since 2022. HRC (hot rolled coil) is considered to be the most consumed steel product in the Mexico steel market with the number touching 4.66 million tons.Regarding the import and export report in March, Mexico's HRC export volume showed signs of decline when it decreased by 60% and only reached 18,000 tons. In contrast, the volume of imported HRC steel recorded a significant growth when it reached 117,000 tons and there is a substantial difference between import and export volume.Similarly, HRC production also recorded a rapid escalation with a figure of 346,000 tons and it rose 15.9% compared to February as well as it increased 12.3% over the same period last year. The reason for this growth comes from the establishment of hot-rolled steel mills that have contributed certainly to the climbing of Mexico’s HRC output. The Mexican representative expressed the desire to develop its autonomy in steel production, thereby helping them strengthen the domestic market as well as reduce dependence on importing hot-rolled coil from foreign.Although Mexico is currently pursuing the strategy of self-reliance in hot-rolled steel production to replace imports, there are still some steel products that force Mexico to depend on imports. According to forecasts from many experts, the demand for main steel products including HRC, CRC and galvanized steel sheet will increase in the long term because the Mexican government has planned to invest in the auto industry.It can be seen that the demand for steel in Mexico is still very strong and is considered a potential market for many exporting countries. Mexico is an impressive galvanized steel export market for Vietnam steel businesses because Vietnam steel products are received a preferential tax rate of 0% based on the commitment of the Comprehensive and Progressive Agreement for Partnership Agreement. Trans-Pacific Partnership (CPTPP). 

Improving steel quality is currently an important foundation for promoting the integration process, economic exchanges, and the expansion of trade exchanges among Vietnamese steel enterprises. Today, customers focus on product quality rather than price, so if you want to retain customers, you need to build a steel quality system.  In the international market, Vietnamese steel is increasingly appreciated for producing steel products that are both quality and affordable.Why improve steel quality?For businesses, improving steel quality is the most useful way to compete and attract customers. In today's conditions, improving product quality is one of the strategies to survive and develop businesses in a sustainable way and is also an important basis for promoting the process of integration, economic exchanges, and expanding international trade exchanges between enterprises. Product quality is critical for improving competitiveness and confirming the position of enterprises' products, goods, and brands in today's fiercely competitive market. Improving steel quality is not only important for businesses but also for the entire economy.When quality is guaranteed and improved, the number of products consumed increases, contributing to the creation of conditions for business development. In fact, Vietnam is now a country with a very strong steel industry in the region, and Vietnam steel has risen to 13th in the world. Improving Vietnam's steel quality close to the world, in particular, is one way to help the steel industry develop sustainably in the future and meet the stringent requirements of global markets. Vietnam's steel quality is improving day by dayIn recent years, Vietnam's steel industry has made significant progress and plays an increasingly important role in the steel industry in Southeast Asia. Vietnam currently holds the No. 1 position with 34% of total finished steel production in the region. Therefore, the requirements for steel quality in domestic and foreign markets are becoming increasingly strict. Vietnamese steel enterprises have invested trillions of VND to produce high-quality steel products favored by major markets in the world. The use of modern technologies and machines improves steel quality, allowing it to meet stringent requirements set by international standards for export and compete in demanding markets. Currently, Vietnamese steel has been exported to many countries and territories, especially the European and American markets. These are markets with very high requirements for product quality, which has also confirmed that Vietnam's steel quality is tending to go up. Opening a new step forward for our country's steel industryDuring the period of formation and development, Vietnam steel has constantly grown and brought to the market quality products with a variety of designs to meet the needs of the market. Vietnamese steel is also manufactured according to the standards of leading developed countries such as the US, UK, and Japan. Today, the steel quality of Vietnamese companies is increasingly gaining a foothold, and that also confirms a new step for Vietnam's steel industry on the world steel map.Vietnam steel - Leading in quality In the Vietnamese market, steel quality is always the top priority of enterprises. Steel products in Vietnam are strictly controlled according to ISO quality management systems such as ISO 9001:2015, ISO 17025:2017, and ISO 14001:2015 before being launched into the market. To achieve quality products, businesses all focus on investing in modern lines and equipment, regularly improving and upgrading equipment,... Vietnamese steel enterprises invest in training and improving employees' skills and abilities in addition to technology, equipment, and management software. Vietnamese enterprises have made investments to ensure the highest level of steel quality, which will be promoted in the future in order to maintain the reputation of Vietnamese steel branded products among customers.goods at home and abroad. Contributing to the development of Vietnam's steel industry in the world steel market. 

In the past, Vietnam imported all hot rolled coil from foreign countries. However, with large investment, enterprises in Vietnam have become self-sufficient in hot rolled coil steel production capacity to meet market demand.Assessment of Vietnam's HRC steel production capacityVietnam's steel production capacity has increased sharply since the 2010s. With a long-term vision and strategy, the assessment of the world and domestic market demand for hot rolled coil products is very high compared to before, especially as China is putting pressure on global hot rolled coil supply. Many Vietnamese enterprises have decided to invest in hot rolled coil production and make this product a major export in the future.Hot rolled coil is one of the steel products that Vietnam has not been able to produce before. The proactive production of hot rolled coil also helps Vietnam become more self-reliant in its steel production capacity. Actively source input materials for the production of steel pipes, galvanized corrugated iron, container casings, shaped steel, and industrial steel, providing high-quality products at competitive prices for other mechanical factories in Vietnam. Currently, in the Vietnamese market, only 2 enterprises, Formosa Ha Tinh Steel Corporation and Hoa Phat Group, can produce this product. This is the pride and a product that demonstrates the maturity of Vietnam's steel industry.Formosa - Vietnam’s leading HRC steel production capacity Formosa Ha Tinh Steel Corporation is one of the factories with large steel production capacities in Vietnam. Formosa is the largest closed iron and steel complex in Southeast Asia today. The first smelter began to be commissioned to produce billets in May 2017. Formosa Ha Tinh Corporation is a pioneer in hot rolled coil manufacturing in Vietnam. December 25, 2015 Formosa Ha Tinh Corporation has launched a hot rolled coil product; this is the first time hot rolled coil is produced in the Vietnam market.Currently, Formosa's hot rolled coil steel production capacity still leads the market, but it has lost its unique position when it has to share market share with Hoa Phat. Formosa's main market is still the South, with more than 60% of the consumption in this market. Formosa is known as a private enterprise that builds facilities, machinery systems, and lines to produce steel from iron ore with high quality and on a large scale to meet domestic and export steel demand. Currently, with 2 furnaces, Formosa has raised its total steel production capacity to about 7 million tons per year.Hoa Phat - The leading HRC steel production capacity in VietnamHoa Phat is one of the enterprises with the largest steel production capacity in Vietnam. Besides Formosa, Hoa Phat is the only domestic enterprise that can produce hot rolled steel coils. At Hoa Phat Dung Quat Iron and Steel Production Complex (the Complex), hot rolled coil is the most important highlight. In January 2021, after 4 blast furnaces came into operation, hot rolled coil became a strategic product for Hoa Phat's new development cycle. May 2, 2020, Hoa Phat launched the first batch of hot rolled coils, this is an important event marking the outstanding steel production capacity of Hoa Phat Group. 8/2022, after nearly 3 years of operation, the 5 millionth tonne of hot rolled coil has been produced at Hoa Phat Iron and Steel Complex, thereby affirming the No. 1 position of Southeast Asian steel manufacturers.Hoa Phat's investment in the production of hot rolled coil contributes to helping domestic enterprises to be self-sufficient in raw materials and increase steel production capacity. Hoa Phat will implement the Hoa Phat Dung Quat 2 Iron and Steel Complex project with a capacity of 5.6 million tons of hot rolled coil/year, bringing the total annual hot rolled coil capacity to 8.6 million tons from 2025.Hot rolled coil production output is increasing with stable quality according to JIS G3101-2017 (Japan) and SAE: J403-14 (USA) standards. Besides satisfying domestic partners and customers, Hoa Phat's hot rolled coil has been exported to markets such as the US, Mexico, EU, Malaysia.... In 2022, Hoa Phat's hot rolled coil sales volume will reach more than 2.6 million tons, bringing Hoa Phat's total steel production capacity to 8.5 million tons of steel/year.

The Vietnam Chamber of Commerce and Industry (VCCI) has submitted a document to the Ministry of Finance, expressing concerns about the impact of the proposed increase in steel export duty on Vietnam's iron and steel sector, particularly the steel billet manufacturing industry.Changes in Vietnam's steel export duty The Vietnam Chamber of Commerce and Industry (VCCI) has sent an official document to the Ministry of Finance to comment on the draft Decree amending and supplementing the Government's preferential import and export tariff. Accordingly, VCCI believes that the proposed increase in steel export duty will harm the steel billet manufacturing industry in particular and Vietnam's iron and steel sector in general.Regarding Vietnam's steel import and export duty, the Ministry of Finance has proposed to change the export tax rate for billet products (groups 72.06 and 72.07) from 0% to 5%. The goal of this adjustment is to contribute to stabilizing the supply for the domestic steel market, stabilizing the market prices, and ensuring the stable development of the steel industry shortly.Accordingly, the export duty is proposed to change based on applying a high level to raw materials and resources to limit the export of unprocessed natural resources. Therefore, the export duty rates for steel groups such as iron ores and steel scrap are regulated respectively at 40% and 15-17%. Particularly for semi-finished products such as billets, Vietnam is applying the export duty rate of 0%.According to the Ministry of Finance, Vietnam's steel industry has had many positive signals with appropriate import and export duty policies. Currently, domestic enterprises are maintaining a stable growth rate, gradually becoming self-sufficient in steel production lines, technology, and capacity, meeting the needs of domestic use and export of steel products in large amounts abroad.According to the Vietnam Steel Association (VSA) 2022, Vietnam's billet production capacity has exported about 8,937 million tons of steel, reaching an export value of 7.99 billion USD. Vietnam's steel export market is mainly distributed in ASEAN (36.22%), EU (18.37%), US (10.57%), South Korea (6.8%), and Hong Kong (4.1%).Steel import duty policy in ChinaAccording to the Ministry of Finance and the tax authority officially announced from 1/5/2021, China stopped the export duty refund policy from 13% to 0% for some steel groups. This decision strongly impacted 64% of China's steel exports, equivalent to 34 million tons, including alloy steel and carbon steel.China's export duty refund policy with group 7210: Non-alloyed coated steel and 7217: Carbon steel wire will cause steel prices in the world to rise. Steel importers worldwide are also facing many difficulties from China's new duty law. They are forced to look for steel-exporting countries with preferential foreign customer policies.Solutions to import steel in the Context of market fluctuationsAccording to the World Steel Association (Worldsteel) and other forecasts, the effects of inflation, high-interest rates, and the adjustment of duty policies of many countries will affect the global steel industry. Learning and connecting more with steel exporting countries in the world helps importers have more opportunities to access better supplies.By taking advantage of domestic raw materials, Vietnamese steel mills help limit pressure due to latency. In addition, the recent benefits of the Government's export duty policy have also contributed to making Vietnam a potential cooperation market for many foreign partners. However, under trade barriers and obstacles in culture, language, and geography, importers still need help finding reputable and quality suppliers.Currently, MRS Steel is one of the units specializing in providing solutions for sourcing and importing various steel products from Vietnam to help customers save time and effort in purchasing. Over 12 years of establishment and development, MRS Steel is proud to bring satisfied experiences to major importers from the EU, USA, Canada, Mexico, Australia, Middle East, Southeast Asia,... MRS Steel has connected with the largest steel factories in Vietnam, such as Hoa Phat, Ton Hoa Sen, POMINA, Ton Dong A, SENDO... can meet all product requirements of customers at the best price.The policies and regulations on the import and export of iron and steel are also constantly changing based on the adjustments and development orientations of the Government. Therefore, to update the complete and latest information, you can contact MRS Steel for the best support.For more information and specific quotation, please get in touch with MRS Steel via:Address: No.41 Street 37, Van Phuc City, Hiep Binh Phuoc Ward, Thu Duc City, Ho Chi Minh City, VietnamWhatsapp: +84 76 911 2358Hotline: +84 28 36 22 33 58Email: vanloc@mrssteel.com.vn