Steel News

On December 4th, the member fund KITMC Worldwide Vietnam RSP Balanced Fund under Kim Vietnam Fund Management purchased 1 million shares of Nam Kim Steel Joint Stock Company. As a result, the fund group's ownership increased to 13.7 million shares, equivalent to 5.2% of the capital, becoming a major shareholder of NKG, accounting for 1.52% of the capital.The transaction took place on December 4th and based on the closing price of December 4th, the share volume is valued at around 24 billion VND. As of now, Nam Kim Steel has four major shareholders: Chairman of the Board, Mr. Ho Minh Quang (14.2% of capital), Unicoh Specialty Chemicals (5.03% of capital), SMC Trading Investment Joint Stock Company (5% of capital), and the Kim Vietnam Fund Management group.According to information from DSC Securities, Nam Kim Steel has planned to expand into a higher-grade galvanized steel segment through its new project, the Nam Kim Phu My plant in the My Xuan B1-Dai Duong Industrial Zone (Ba Ria-Vung Tau). This plant is expected to have an annual capacity of 1.2 million tons and a total investment capital of 4,500 billion VND.At present, Nam Kim Steel operates three plants with a combined designed capacity of 1 million tons per year, specializing in producing cold-rolled steel, color-coated steel, galvanized steel and steel pipes. Upon completion of the new plant, the overall capacity of the entire system will more than double to reach 2.2 million tons per year.The construction of the new plant will commence in 2024 and span across three phases (each producing 400,000 tons) until the end of 2026. The new product will be galvanized steel used in household electrical appliances, requiring higher manufacturing technology than Nam Kim Steel’s current galvanized steel products, primarily used in construction.DSC believes this project will contribute to enhancing Nam Kim's competitiveness and revenue in the future by leveraging the advantage of low steel production costs domestically, thereby stabilizing profit margins.According to the business operations, Nam Kim Steel reported a revenue of 4,262.06 billion VND, a decrease of 3.7% compared to the same period. However, the after-tax profit recorded a gain of 23.66 billion VND compared to a loss of 418.69 billion VND in the same period, marking an increase of 442.35 billion VND. Notably, the gross profit margin shifted from a negative 3.6% to a positive 4.8%.Over the first nine months of 2023, Nam Kim Steel recorded a revenue of 14,136.76 billion VND, marking a 24.7% decrease compared to the same period, while the after-tax profit amounted to 109.74 billion VND, showing a 62.1% decrease from the corresponding period.It's known that in 2023, Nam Kim Steel set its business plan with a total revenue target of 20,000 billion VND, a 13.5% increase compared to the same period, and an estimated pre-tax profit of 400 billion VND compared to a loss of 106.91 billion VND in the same period, amounting to an additional 506.91 billion VND. Therefore, by the end of the first nine months of 2023, with a pre-tax profit of 146.97 billion VND, Nam Kim Steel had achieved 36.7% of the annual profit plan.

China's iron ore imports in November 2023 reached 102.74 million tons, up 3.37% over the previous month. Import volume in the first 11 months of 2023 increased by 6.2% over the same period. China's steel exports in November 2023 increased by 43.29% over the same period, steel imports in November decreased by 18.13% over the same period in 2022.According to Customs data, China's iron ore imports in November rose 3.94% year-on-year as steel mills' profit margins improved and the recovery of the CNY, which encouraged the purchase of steel production raw materials.As the world's largest consumer of iron ore, China imported 102.74 million tons of iron ore in November compared to 99.39 million tons in October 2023. November's imports maintained a high level for the fourth consecutive month and marked the fifth instance of surpassing 100 million tons in 2023.Mysteel’s data showed that iron ore inventories at surveyed mills increased 3.5%, reaching 93.02 million tons at the end of November. The Chinese yuan (CNY) appreciated 2.5% against the US dollar in November 2023.Customs data also revealed that China's iron ore imports in the first 11 months of 2023 increased 6.2% to a record high of 1.08 billion tons. Jiangsu Fushi Data Research Institute predicted that iron ore imports in December may remain at roughly the same level as last month as factories need supplies to meet production requirements during the New Year holiday in early January 2024. Buyers will settle their shipments via sea freight before the end of the year amid rising CNY, which means volumes this month will not be small.Regarding steel product exports, China recorded 8.01 million tons in November, up 43.3% over the previous year and 0.88% over October 2023. Besides, China imported 614,000 tons of steel products last month, down 18% compared to November 20233. The total imports for the first 11 months of 2023 stood at 6.98 million tons, down 29.2% compared to a year earlier.Where to contact reputable Vietnamese steel importers?MRS Steel provides solutions for importing Vietnamese steel to many countries around the world. We have more than 12 years of experience in the field of sourcing and purchasing support for importers from the US, Europe, Australia, ASEAN,... helping customers connect with Vietnam's largest steel manufacturers at competitive prices.Currently, thanks to favorable trade policies and tariffs in import and export, Vietnam has become the main import market for many countries around the world.With the 13th largest crude steel output worldwide and increasingly invested and improved production technology, Vietnamese steel has a leading position in the international market. Therefore, customers are completely assured about product quality and international standards when choosing Vietnamese steel.For any need to learn about the market or steel products from Vietnam, customers can contact MRS Steel via Whatsapp: +84 76 911 2358 or Email vanloc@mrssteel.com.vn for the most detailed advice.

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.

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.

The steel industry in Vietnam and globally is showing positive signs, forecasting a resurgence in a new cycle for the steel sector. With the increasing demand for steel, the market anticipates a significant acceleration in business outcomes next year.The general situation of the global steel industryWith the global economy continuing to decline under the strain of tightened monetary conditions impacting the world economy at large and the steel industry in particular, steel production slowdowns are evident in several key markets such as Japan, South Korea, Russia and others. While there's a prevailing trend of decline in the market, there are still discernible signs of recovery. In the first nine months of 2023, global crude steel production reached 1.4 billion tons, marking a 0.1% increase compared to the same period in 2022. This uptick serves as a bright spot, indicating a gradual resurgence in the steel industry.With its consistent dominance, accounting for over 50% of the annual global steel production, China's steel industry significantly influences the worldwide steel sector. Even steel prices within China's domestic market have a profound impact on the global steel market. Historical data also indicates that steel prices in Vietnam tend to exhibit quite similar fluctuations, sometimes responding at a slower pace compared to the fluctuations seen in Chinese steel prices.With Chinese steel prices nearly hitting their lowest levels in 2017 and showing signs of recovery in the third quarter of 2023, thanks to favorable export markets, there's an anticipation for a positive impact on the overall global steel price landscape. This also suggests a potential resurgence in demand in the largest steel markets among developed nations, including the Vietnamese steel industry.The Vietnamese steel industry is on the verge of recoveryIn Vietnam's market specifically, the steel industry anticipates a robust resurgence as the real estate market revives from 2024 onwards. Simultaneously, the government is vigorously expediting public investment disbursement on the largest scale ever seen. Most key national projects have commenced this year, indicating that the period from 2024 to 2026 will witness a dense construction phase, generating substantial demand for steel.The demand for steel has somewhat improved in the latter months of the year. In fact, several steel industry enterprises are experiencing positive business outcomes and substantial consumption. According to the financial report for Q3/2023 from Hoa Phat Group Joint Stock Company, their net profit reached approximately 2,000 billion VND, a significant improvement from the loss of 1,800 billion VND in the same period last year. The recovery in net profit is attributed to enhanced sales volume, reduced input material costs, and improved inventory management.According to assessments by multiple financial organizations, in the upcoming recovery phase of the steel industry cycle, Hoa Phat Group Joint Stock Company is expected to be the largest and first beneficiary due to its advantages in scale, dominant market share in various product segments, as well as its strong financial capacity.

The Ministry of Industry and Trade has just announced receiving information from India's Directorate General of Trade Remedies about issuing a questionnaire for the sunset review of countervailing duties on stainless steel welded pipes from China and Vietnam.The Trade Remedies Authority specifies that a sunset review is conducted just before the expiration of a 5-year period from the date of the official decision on anti-dumping duties or from the date of the review results (if the review covers both anti-dumping and damage).The tax imposition was issued by the Indian Ministry of Finance and became effective for a period of 5 years starting on September 17, 2019. The goods under review are stainless steel welded pipes falling under the HS codes: 7306 40 00, 7306 61 00, 7306 69 00, 7304 11 10, 7304 11 90, 7304 41 00, 7304 51 10, 7304 90 00, 7305 11 29, 7305 90 99, 7306 11 00, 7306 21 00, 7306 29 19, 7306 30 90, 7306 50 00, 7306 90 11, 7306 90 19, 7306 90 90. The HS codes do not limit the scope of the products under review.According to India's regulations, after 5 years of application, upon the request of the domestic manufacturing sector's representative, the Directorate General of Trade Remedies must conduct a final review to assess the necessity of continuing the anti-subsidy measures or to consider the possibility of a recurrence of subsidization practices or damage to the domestic manufacturing sector if the anti-subsidy duty on stainless steel welded pipes from Vietnam is terminated.The initiation of the sunset review investigation on the anti-subsidy tax on stainless steel welded pipes from Vietnam took place on September 30, 2023, according to the Directorate General of Trade Remedies. The official submission of the questionnaire for investigation to manufacturers, exporters and related parties occurred on November 28, 2023, by the Indian Directorate. Consequently, concerned parties have 7 days from the official date of sending the questionnaire to submit opinions on the security measures of the petition within the required file. Within 15 days from the official date of sending the questionnaire, entities need to provide input on the petition, the scope of the investigated goods, and propose product management code numbers. Furthermore, the respondents are expected to submit their responses to the investigation questionnaire and relevant information within 30 days from the official date the Directorate General of Trade Remedies sent out the questionnaire.The period for conducting the review on the anti-subsidy duty on stainless steel welded pipes from Vietnam spans from April 1, 2022, to March 31, 2023. Regarding the content related to damages, the investigation period will additionally cover the three most recent financial years: 2019-2020, 2020-2021, and 2021-2022.The Bureau of Trade Remedies recommends that relevant exporters thoroughly study all related documents and information regarding the case. Full and comprehensive cooperation with the Indian Directorate General of Trade Remedies is advised. Register as an involved party, respond to the questionnaire within the specified timeframe and format and maintain regular contact with the Bureau of Trade Remedies to receive timely information and support.