Steel News

As a country with a developed steel industry providing more than 50% of global steel output, however, China is now massively exporting steel, causing concerns about global oversupply. The main reason comes from the weakening of the real estate market, which causes the country's domestic consumption to decline. Join MRS Steel to learn more through the article below!China's steel industry boosts exportsAccording to a report by the National Bureau of Statistics, in the first 2 months of 2024, China exported nearly 16 million tons of steel, an increase of 32.6% over the same period last year. This is also considered the highest steel export level of the Chinese steel industry from 2016 until now.According to Nikkei Asia, China's steel exports this year will equal or exceed last year's level, as China is on track to export about 90 million tons of steel and closer to 110 million tons in 2015, when it will witness an increase in anti-dumping measures around the world. This shows that the Chinese government is gradually stimulating the country's economic recovery.China just reported its highest steel export figures in eight yearsCurrently, China provides about 55% of the world's steel output. Therefore, even a small increase in exports can lead to downward pressure on prices in world markets. Therefore, the Chinese steel industry's promotion of exports has affected the steel industries of other countries, especially Southeast Asian countries, which are China's main export markets. In September 2023, the country's steel exports to Thailand increased by about 60% year-on-year, with exports to Malaysia increasing by about 80%. The amount of steel exported to Indonesia doubled and to Vietnam more than quadrupled.Pressure for Vietnam's steel industryA large amount of imported steel from China continuously floods the Vietnamese market, causing great pressure on the domestic steel industry. In just the first 2 months of 2024, the amount of steel imported from China reached 1.8 million tons, of which Vietnam's HRC alone imported from China reached 1.4 million tons, accounting for 74.2% of the total amount of HRC imported in the first 2 months of 2024.The reality of China's steel imports increasing sharply in the context of Vietnam enjoying an import and export tax of 0%. Trade defense measures have been lifted; other steel products, such as galvanized steel sheets, color steel sheets, steel pipes, prestressed steel,... are not subject to any trade defense measures. Facing pressure from imported steel, since 2023, the Vietnam Steel Association has made recommendations to the government to strictly control the import of steel products into the Vietnamese market.Chinese steel exports a lot, causing pressure on Vietnamese steelAs China increases steel exports, the country is turning to high-value-added products, putting pressure on domestic steel producers such as Hoa Phat, Hoa Sen, Ton Dong A,... Once again, Vietnam's steel industry faces a big challenge when it has to compete with cheap steel sources from China. This raises a warning bell for Vietnam's steel industry to have appropriate policies to ensure its development. development of domestic steel enterprises.Above is the information that MRS Steel sends to you about the problem of the world steel industry having excess supply because the leading country in steel production, China, is promoting exports. With China promoting exports, it not only affects Vietnam's steel industry but also the steel industry of other countries.

Vietnamese iron and steel export value to Singapore in the first 2 months of 2024 reached more than 21.5 million USD, an increase of 56 times over the same period last year.According to preliminary statistics from the General Department of Customs, the value of exporting goods to the Singapore market in the first 2 months of 2024 reached nearly 737 million USD, an increase of 9% over the same period last year. Notably, the value of Vietnamese iron and steel exports to Singapore reached more than 21.5 million USD, an increase of 56 times over the same period last year.Currently, Singapore's infrastructure construction is increasingly developing, leading to a sharp increase in iron and steel import demand. Singapore is a country with the best economy in the Asia-Pacific region, especially in 2024, the country will promote the construction of social housing to support people in difficult economic contexts.In the context of the Chinese iron and steel market being dominant, exporting massively to many countries around the world, Singapore needs to find and expand the supply market for raw materials to replace China. This will contribute to reducing China's influence on the global economy.Vietnam is one of the key steel suppliers that helps Singapore reduce its dependence on Chinese supplies as well as solve the shortage of goods. In January 2024, Vietnam rose to the position of Singapore's 10th largest trading partner, with a two-way trade turnover of more than 2.9 billion SGD, an increase of 18.08%. Vietnam currently ranks 17th out of Singapore's 20 largest import partners with a turnover of 678.8 million SGD (up 30.34%). Vietnam's construction steel prices are competitive compared to other countries, so markets such as Singapore and Malaysia have increased imports in the first 2 months of this year.Above is the import-export situation of Singapore in the first 2 months of 2024 and the prospects for growth of Singapore-Vietnam steel import cooperation. All questions and needs to import high quality Vietnamese steel, customers please contact MRS Steel via Whatsapp:+84769112358 or Email: vanloc@mrssteel.com.vn.

The year 2024 is expected to mark the recovery of the steel industry. Efforts to increase the disbursement of public investment capital along with promoting credit loan packages for social housing projects can have a positive impact on the steel market.Pressure from cheap Chinese steelAfter COVID-19, China gradually reopened to recover the economy. Being the country with the most developed steel industry in the world, however, the persistent situation of the real estate crisis also makes the business activities of this country's steel industry not very positive. Weak demand in the Chinese steel market in the context of the country's slowing economic growth, the real estate market not yet recovering, the electric vehicle manufacturing sector showing signs of oversupply, making steel products China continues to be exported at low prices to reduce inventory. This is a factor that puts great pressure on Vietnam's steel industry. Previously, in 2023, China exported 91.2 million tons of steel, an increase of 35% compared to 2022. China exports steel mainly to Southeast Asian countries such as Indonesia, Thailand, the Philippines, Vietnam, etc., which also puts more competitive pressure on Vietnamese businesses because these have been the main export markets of the Vietnamese steel industry for many years. China's promotion of exports has led to a decrease in steel prices, causing the gross profit margin of many Vietnamese steel manufacturing enterprises to recover more slowly than expected.The steel industry is expected to recoverIn 2024, along with the recovery of the steel industry market, profit margins of steel manufacturing enterprises will improve after a long period of suffering losses and inventory.According to a recent report from the Vietnam Steel Association (VSA), Vietnam's economy will have positive bright spots in 2023 when growth is promoted, inflation is controlled, and major balances of the economy are guaranteed. However, due to the impact of the world economic downturn, in 2023, the finished steel products of Vietnamese steel industry enterprises will only reach 27.76 million tons, down 5%. Consumption of finished steel products will reach nearly 26.3 million tons, down 3.5% compared to 2022. However, exports are a bright spot with significant growth, reaching 8 million tons, up 29% over the year. Previously, with the main export markets in the ASEAN region, EU, United States, and India,...VSA also said that it is expected that in 2024, steel industry consumption will increase by about 6.4% and steel exports will increase to nearly 13 million tons. This target is set based on the expectation that Vietnam's GDP will grow by 6 - 6.5% this year. In addition, world steel demand is expected to increase by 1.9%, reaching 1.8 billion tons in 2024, of which ASEAN steel demand is expected to increase by 5.2%. VSA said that the steel production prospects of Vietnam's steel industry will increase by about 10% in 2024 and 8% in 2025 when the demand for steel in domestic economic sectors recovers. Finished steel product production in 2024 and 2025 is estimated to reach about 28 million - 30 million tons; domestic steel consumption demand is about 22 million - 23 million tons.The business picture of steel industry enterprises has passed the gloomy period when steel prices showed signs of recovery. Businesses do not have to set up large inventories like last year. Profits of steel enterprises are gradually improving thanks to increased steel consumption and exports and reduced inventories at enterprises. With the government's economic promotion programs, including removing difficulties in the real estate sector, supporting interest rates, promoting public investment, etc., Mr. Nghiem Xuan Da, General Director of Steel Corporation Vietnam (JSC), forecasts that steel industry output in 2024 could increase by 10%.Expecting the real estate market to recover in the second half of 2024, creating demand for the steel industry, Hoa Phat plans to increase steel output by more than 10% this year. In addition, this enterprise also invests in new projects to continue to strengthen its position as the leading steel manufacturer in Southeast Asia.

According to the Vietnam Customs Department, iron and steel export output in the first 2 months of 2024 reached 1.5 billion USD, an increase of 19% in volume and 13% in value compared to the same period in 2023. In particular, Italy, the US and Malaysia were the top 3 import markets for Vietnamese steel in January 2024.In February 2024, the average export steel price reached 713 USD/ton, up 0.6% compared to the previous month. ASEAN continues to be Vietnam's largest steel export market, accounting for 32% of the market share. The EU and the US followed closely with 28% and 9% respectively.Notably, in January 2024, Vietnamese steel export volume to Italy, the US and Malaysia saw significant growth. Specifically, Vietnam exported 203,000 tons of iron and steel to Italy, an increase of 114% over the same period last year, while exports to the US reached 139,000 tons, an increase of 419%. In particular, iron and steel exports to the Malaysian market increased sharply in volume, reaching 120 thousand tons in the first month of the year, a 625% increase compared to January 2023.The reason why Malaysia boosts imports of Vietnamese iron and steel is because of the demand for steel, especially construction steel for domestic construction and infrastructure projects. According to the Southeast Asia Iron and Steel Institute (SEAISI), construction activities in the region gradually stabilize and develop, which will drive steel consumption in ASEAN countries. ASEAN's steel demand is expected to increase sharply in the next two years as construction activity recovers.Malaysia is one of Vietnamese 10 largest trading partners. Bilateral trade turnover has increased steadily over the years, with 2022 reaching nearly 14.8 billion USD. The two sides strive to achieve the goal of bringing bilateral trade turnover to 18 billion USD by 2025. Vietnam and Malaysia are members of new-generation trade agreements such as the Global Economic Partnership Agreement. Regional Partnership (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), ASEAN Trade in Goods Agreement (ATIGA) and ASEAN Free Trade Area (AFTA. Thanks to the support and facilitation from the governments of both countries, steel exports to Malaysia will have many positive highlights in the future.Furthermore, world steel demand is expected to grow strongly in 2024, reaching 1.8 billion tons, up 2% over the previous year. Therefore, Vietnam's steel production faces many opportunities and development in 2024, with an estimated growth of around 10%.Hopefully the information on bilateral import and export situation between Malaysia and Vietnam has helped you update the newest global steel news. MRS Steel provides solutions to import high quality Vietnamese steel at good prices to help you save time, effort and minimize import risks. For any consulting information, please contact MRS Steel via Hotline +842836223358 or Email: vanloc@mrssteel.com.vn.

Associated with the development of the business, recently, Mr. Tran Dinh Long, Chairman of the Board of Directors of Hoa Phat Group, decided to invest in three new projects in the Nam Phu Yen Economic Zone with a project scale of over 120,000 billion dong.Currently, Hoa Phat Group is the largest steel manufacturer in Southeast Asia, with more than 30 years of experience. After a period of learning, researching and discussing with the leaders of Phu Yen province, Hoa Phat Group decided to sign a memorandum of understanding to invest in three projects in the South Phu Yen Economic Zone. Projects include: the original beach port; investing in construction and trading in the infrastructure of Hoa Tam Industrial Park; and the Hoa Phat Iron and Steel Complex Project in Hoa Tam Industrial Park. The total expected investment capital is over 120,000 billion VND.Currently, Hoa Phat's production capacity is 8.5 million tons per year. Of which, high-quality steel billets and construction steel are 5.5 million tons and hot-rolled steel coils are 3 million tons per year. Hoa Phat Group is currently leading in Vietnam in terms of market share of construction steel, steel pipes and the top 5 largest coated steel sheet manufacturers. It is also the only Vietnamese enterprise that can produce HRC steel, prestressed steel cables and many other high-quality steel products.Along with that, Hoa Phat Group is also implementing the Hoa Phat Dung Quat 2 Iron and Steel Production Complex project in Quang Ngai, with a design capacity of 5.6 million tons of hot-rolled steel per year. It is expected that when the project is completed in 2025, Hoa Phat's annual crude steel production capacity will reach over 14 million tons, equivalent to the top 30 largest steel enterprises in the world.Regarding the business situation, in 2023, Hoa Phat Group will reach VND 120,355 billion in revenue, down 16% over the same period last year. Profit after tax is 6,800 billion VND, completing 85% of the year plan. Hoa Phat leaders said that in 2023, it will produce 6.7 million tons of crude steel, down 10% compared to 2022. Sales output of HRC steel products, construction steel, high-quality steel and steel billets reached 6.72 million tons, down 7%. In addition to traditional steel product lines, Hoa Phat Group has invested in deep processing, promoting the production of high-quality steel to serve domestic and export needs. The Hoa Phat steel export market has expanded to 39 countries and territories worldwide.Exporting helps Hoa Phat Group diversify consumer markets while contributing to foreign exchange earnings and balancing Vietnam's trade balance. Hoa Phat is still leading the market share in Vietnam in construction steel and steel pipes and is the only Vietnamese enterprise that can produce HRC steel, prestressed steel cables and many types of high-quality steel.With Hoa Phat Group investing in an additional factory in Phu Yen, it will increase the group's output, helping Hoa Phat firmly hold its position as the leading steel manufacturer in Southeast Asia. Besides, it also helps increase the position of Vietnam's steel industry in the world steel market.