Steel News

The Pomina Steel Board of Directors recently announced the decision to sell nearly 70.2 million shares, equivalent to 20% of the Pomina stake to Nansei Steel Japan. Accordingly, the price per share is listed at 10,000 VND (0,42$) and is about 35% higher than the market price. Overview of the dealing Pomina stake eventOn July 14, the  General Meeting of Pomina Steel Shareholders said that the stock issuance process would be divided into two rounds; the first round will take place in August with more than 10.6 million shares, and the remaining shares will be completed in September 2024. However, the Japanese partner will not be allowed to transfer shares for the first 3 years since the transaction started.Nansei Steel is a steel manufacturer and exporter based in Chiba, Japan, this business has just been established in Vietnam for half a year. Answering the news conference, Mr. Inafuku Makoto said that the company has had the opportunity to cooperate with Pomina steel company since 9 years ago. The result of this cooperation is the transfer of a 20% Pomina stake with a value equivalent to 20 million USD.Mr. Inafuku Makoto stated at the general meeting of shareholdersCurrently, Pomina only has one major shareholder Vietnam Steel Production and Trading Co Ltd with an ownership rate of more than 53.3% of the capital, but after completing the offering, Nansei Steel will be the second largest shareholder in Pomina. Some news sources indicated that this money was used to renew working capital as well as to invest in the blast furnace with a capacity of 1 million tons into operation.Transferring Pomina stake is an excellent solution to overcome financial difficultiesPomina is deep into a difficult financial period due to the influence of the domestic steel consumption market from 2022 to the present. Last year, the company made a loss of profit after tax of nearly 1100 billion dong and another 186 billion dong in the first quarter of 2023. According to the management, cooperating and transferring shares with Nansei Steel is the best solution to help the company have enough financial resources to meet market demand in the next half year.According to Pomina's CEO, the Vietnamese steel market in the period 2024 may prosper thanks to public investment; however, the growth percentage in consumption is only from 15 to 20% because the demand for Vietnam's steel consumption mainly comes from the real estate sector. Therefore, also at the meeting of shareholders, Pomina set a revenue target of 9,000 billion dongs this year, and the loss of after-tax was reduced to 150 billion dongs. This figure is much lower than the target set in the previous annual report because the situation of Vietnamese steel in the first half of this year is still gloomy and there are not many strong breakthroughs.In the first half of 2023, although the Vietnam steel market has passed the most challenging period, the recovery rate is still prolonged because the demand for steel is not diversified and only focuses on the real estate sector. However, in the future, the domestic steel consumption market will have more bright spots when Vietnam is promoting investment strategies in automobile manufacturing and renewable energy industries. These two fields have strong steel consumption when most of their parts and components are made of steel to increase sustainability. 

The trend of steel import is facing many challenges and the risk of cutting production due to world fluctuations such as the extended Russian-Ukrainian conflict,... According to the latest report of the Vietnam Steel Association (VSA), the total export and import turnover of goods in June 2023 was estimated at USD 145 million, down 22.3% over the same period in 2022. Which export of construction steel reached 149,623 tons, down 21.5%.1. General assessment of Vietnam's import and export situation in June 2023The total export and import turnover of goods in June 2023 was estimated at 145 million USD, down 22.3% over the same period last year. Generally, in the first half of 2023, goods' total export and import turnover reached 930.6 million USD, down 14.2% over the same period in 2022. Which export of goods was estimated at 730 million USD, down 14.4%; the import was estimated at 200.6 million USD, down 13.4% over the same period.Regarding the market, the US is still Vietnam's largest export market with an estimated turnover of 44.2 billion USD, China is the largest import market with a turnover of 50.1 billion USD. Trade surplus to the US was estimated at 37.2 billion USD, down 24.9% over the same period last year; to the EU was estimated at 14.5 billion USD, down 9.8%; to Japan reached 1.2 billion USD; from China reached 24.5 billion USD, down 30.9%; from Korea reached 13.4 billion USD, down 34.8%; from ASEAN reached 4 billion USD, down 39.1%.2. Vietnam's steel export situation in June 2023Regarding exports, the export turnover of goods in June 2023 was estimated at 29.3 billion USD, up 4.5% over the previous month thanks to strongly promoted trade promotion activities.In June 2023 alone, construction steel production reached 738,196 tons, down 9% from the previous month and 20% over the same period last year. Construction steel export output reached 149,623 tons, down 21.5%, of which flat billet had the largest output with more than 210 thousand tons. Ranked 2nd and 3rd respectively are hot rolled coils with over 280 thousand tons and galvanized steel with over 220 thousand tons.Currently, the price of iron ore 62% is trading at 112 USD/ton, a negligible increase compared to the beginning of June 2023. The average price of iron ore in the second quarter is about 113 USD/ton, down 11% compared to the beginning of the first quarter of 2023 and down 19% compared to the same period in 2022. Coking coal price is about 230 USD/ton FOB, the average trading volume price level in the first half of 2023 was 293.6/ton USD, down 36.9% over the same period last year.3. Vietnam's steel import situation in June 2023According to data from the Vietnam Steel Association (VSA), the top 3 steel products with the highest import volume in June 2023 were hot rolled coil, scrap steel and stainless steel, reaching respectively 197,727 tons, 52,455 tons and 33,926 tons. In which, China's hot-rolled steel imports were 102,433 tons, accounting for 52% of Vietnam's total import volume. China's increase in steel exports has created robust pressure for domestic enterprises, causing consumption output to plunge and unstable steel prices.VSA's explanation for the strong import of foreign steel into Vietnam is that the duty rate applied to imported steel products is 0%. Not only that, trade remedies such as steel billet safeguards have been removed, so most steel products such as galvanized steel sheets, pre-painted steel sheets, prestressed concrete or steel pipe are not subject to any defense measures. Because of the convenience and ease of not having a strict quality inspection process like in other countries, the steel output imported into Vietnam is very diverse in terms of type, quantity, and quality.The above is a report on Vietnam's steel import and export situation in June 2023 with fluctuations and changes in the world economy. MRS Steel will continuously update news about the domestic steel market, so do not forget to follow mrssteel.com.vn to receive the latest articles. For questions and advice on importing Vietnamese steel, don't hesitate to get in touch with MRS Steel via Email at vanloc@mrssteel.com.vn or Whatsapp at +84 76 911 2358.

Hoa Phat Group plans to reopen the last blast furnace in the third quarter of 2023 when the market shows signs of recovery after the Covid-19 pandemic. HPG's second quarter of 2023 profit is expected to continue to increase thanks to favorable input costs.KB Securities (KBS) said that Hoa Phat Group is ready to reopen the last blast furnace at Dung Quat in the third quarter of 2023 to meet the market demand that has begun to recover.Hoa Phat Group Joint Stock Company has currently operated 6/7 steel furnaces, including: 3 BOF furnaces in Hai Duong, 3 BOF furnaces in Dung Quat and 1 EAF furnace in Hung Yen with an estimated total operating capacity of 85% of total design capacity. HPG's production output in May 2023 has reached the highest level since October 2022.Previously, the group was forced to stop operating 4 blast furnaces, including 2 blast furnaces in Hoa Phat Dung Quoc and 2 blast furnaces in Hai Duong in November 2022 in order to maintain production and business activities in the difficult context due to the pandemic. However, the enterprise does not completely close the blast furnaces, but only maintains the lowest temperature to optimize costs. Hoa Phat leaders shared, the cost to restart the blast furnace is about 30-40 billion VND/furnace.The steel market in Vietnam in particular and the world in general has shown many clear signs of recovery when consumption volume increases and steel prices are kept stable. Hoa Phat's inventory from the beginning of the year until now has also been gradually released.Excluding hot-rolled coil export orders, which increased sharply in April and May, 2023, the consumption of the whole steel industry in the first 5 months of this year remained weak. However, experts' forecasts show that consumption volume of the whole industry will recover strongly by the end of the third quarter of 2023 and the beginning of the fourth quarter of 2023, before a stronger growth in 2024.Improved steel consumption demand helps stabilize steel prices in the second half of this year and may grow from 2024. Input materials (iron ore, coke, scrap steel) plummeted, causing prices to decline. HRC steel in Vietnam also fell to the 5-year average. Currently, Vietnam has the two largest HRC factories, Hoa Phat and Pomina with a total capacity of up to 7 million tons/year, produced on the modern continuous casting production line of Danieli Group - Europe, the products all meet many strict standards such as JIS, MS, SAE, BS, EN,...For fastidious markets such as the US and EU, exported steel products must prove that their origin is not from China. Therefore, the self-reliance in the source of base steel (HRC) produced in Vietnam helps sheet steel, cold rolled coil (CRC), and pipes companies open up many export opportunities.According to experts, Hoa Phat's 7 blast furnaces have a total capacity of over 8 million tons, when reopening 7/7 blast furnaces, Hoa Phat Group's profit is expected to increase significantly, but the selling price of finished steel may slow down. Specifically, the price of raw materials (iron ore, coke, scrap steel) in the second quarter of 2023, respectively, decreased by 10%, 44% and 18% compared to the first quarter of 2023. Meanwhile, the price of construction steel and HRC in Vietnam decreased by 6% and 15% compared to the first quarter of 2023.Hoa Phat's restoration of blast furnace production in the third quarter of 2023 will help Vietnam's steel output significantly increase, meeting the consumption demand of robust importing countries such as ASEAN, the United States, Europe, and Australia. …To receive more latest news about the Vietnam steel market, please get in touch with MRS Steel via Email at vanloc@mrssteel.com.vn for thoughtful support!

Hoa Phat's steel sales set the highest level in June with the total sales volume of construction steel, hot rolled coil (HRC), and billet reaching 540,000 tons.Hoa Phat's steel sales volume hit a new peak in June 2023Construction steel sales in June reached 286,000 tons. Although the volume decreased by 18% compared to June last year, it increased slightly compared to May with construction steel sales reaching 284,000 tons. Hoa Phat's representative said that the increase in sales volume mainly came from strong consumption demand in the central and southern regions of Vietnam, in which the demand in the South increased by 69% when compared to May.Hoa Phat steel output statistics from January to June 2023The output of HRC (hot rolled coil) in June also recorded positive signals when it reached 251,000 tons and increased slightly by 3% compared to the previous month. Generally, HRC consumption volume in June reached the highest level since November 2022 and increased by 24% compared to the same period last year. Demand for input materials at steel pipe and galvanized steel pipe factories in the North and Central regions has contributed to a significant improvement in HRC output,Besides, steel pipes and galvanized steel products also showed a specific growth when both of them reached 60,000 tons and 39,000 tons. Specifically, galvanized steel products achieved a growth rate of 42% compared to June 2022.Overview of Hoa Phat’s steel sales and  production capacity in 6 months of 2023In the first 6 months of 2023, the total volumes of construction steel Hoa Phat supplied to the market reached 1.6 million tons and decreased by 30% compared to the first 6 months of 2022. Hoa Phat's HRC sales volume in 6 months including both domestic and foreign markets reached 1.2 million tons, overall HRC output decreased by 15% compared to the same period last year. Hoa Phat steel pipe and corrugated iron achieved output of 325,000 tons and 175,000 tons, down slightly compared to the first 6 months of 2022.Total steel sales of Hoa Phat in the first 6 months of 2023According to the 6-month accumulation, the total sales volume of 5 main products at Hoa Phat including construction steel, HRC and steel pipes, galvanized sheet, and steel billet reached 3.4 million tons and decreased by 25% compared to the total output in the same period last year.Regarding crude steel production capacity, Hoa Phat's total crude steel output in 6 months of 2023 reached 2.86 million tons and decreased by 34% compared to 6 months of last year (nearly 4 million tons of crude steel).Forecasting the opportunities of the Vietnam steel market at the end of 2023The situation of crude steel production in the first 6 months of 2023 is not very favorable compared to last year due to unsatisfactory consumption demand and high input material costs that have made many manufacturers forced to cut. However, crude steel consumption from January 2023 to June 2023 showed stability and showed signs of gradual recovery.Vietnam crude steel production and consumption in 6 months 2023Although there are many challenges, the construction industry is expected to revive domestic steel consumption in the second half of 2023. The Ministry of Construction recently promoted construction investments remaining in 2022 and implemented more civil house construction plans in 2021-2030. Supported decisions from the Government help domestic steel manufacturers have the opportunity to solve the problem of consumption demand.The only bright spot at the moment is the export situation of HRC with export volume in May hitting a record of more than 390,000 tons. It is estimated that HRC's export volume in the first 6 months of 2023 will reach nearly 1.7 million tons; this is a signal showing the intense competitiveness of HRC from Vietnamese steel producers compared to international competitors.The policies of construction projects in late 2023 as well as the bright spot in HRC exports have raised the expectation of a strong recovery of Vietnam's steel industry. The promotion of HRC exports has helped manufacturers deal with inventories when domestic demand is not enough and moreover, Vietnam has more foreign currency revenue to nicely balance the influence of the foreign exchange rate. 

According to the General Department of Vietnam Customs report, thanks to the trade promotion activities, the import and export turnover in May 2023 was estimated at 55.86 billion USD, up 5.3% compared to the previous month. The export of iron & steel reached 1.13 million tons, and the import of iron & steel of all kinds in May 2023 reached more than 838,000 tons.1. General assessment of Vietnam's import and export situation in May 2023According to preliminary data in May 2023 from the General Department of Customs, the country's total import and export value reached 54.08 billion USD, up 1.9% (equivalent to 1 billion USD) compared to the previous month. Export value was 28.04 billion USD, up 0.6% (equivalent to 176 million USD) and import value was 26.04 billion USD, up 3.3%.Regarding the export market, the United States is still Vietnam's largest partner with an estimated turnover of 37.2 billion USD. China is the largest import market of our country with an estimated turnover of 43.4 billion USD. In the first 5 months of 2023, Vietnam's trade surplus to the US was estimated at 31.2 billion USD; to the EU was 12.6 billion USD; to Japan was 521 million USD.2. The situation of Vietnam's steel exports in May 2023Merchandise exports in May 2023 reached 28.04 billion USD, up 0.6% (equivalent to 176 million USD) over the previous month. The commodity groups with the most substantial increase in value were textiles and garments with an increase of 376 million USD, vegetables and fruits by 265 million USD, iron & steel of all kinds with an increase of 118 USD, crude oil by 98 million USD, compared to the previous month.Iron & steel exports of all kinds in May 2023 reached 1.13 million tons, bringing the total export volume of this commodity in the first 5 months of 2023 to 4.38 million tons, up 10.4% over the same period last year. The main reason is that the import demand of the EU market increased by 55% and reached 1.36 million tons. Among 27 European countries, Italy is the largest importer of Vietnamese steel with nearly 696,000 tons, up 121% over the same period last year.According to the Ministry of Industry and Trade, Vietnam's future steel exports to the EU market will have many advantages thanks to changes in trade remedy policies for some steel products imported from developing countries in the WTO. According to the new regulations, valid from July 1, 2023, Vietnam benefits significantly from this quota expansion.Vietnam's most prominent steel export market is the ASEAN region with about 36% market share. In the first 5 months of 2023, the amount of iron & steel exported to the ASEAN market was 1.53 million tons.3. Vietnam's steel import situation in May 2023According to the General Department of Customs, the import value of goods in May 2023 reached 26.04 billion USD, up 3.3% (equivalent to 827 million USD) over the previous month. In the group of raw materials with increased the most such as crude oil increased by 40.1%, gasoline of all kinds increased by 20.8%, and coal of all kinds increased by 14%. Meanwhile, the commodity groups with a sharp decrease were iron & steel scrap, down 53.1% (equivalent to 137 million USD), and iron and steel and products down 7.4% (equivalent to 95 million USD).Iron & steel imports of all kinds in May 2023 reached more than 838,000 tons, down 18.9% over the previous month, worth 772 million USD, down 13.5%. Thus, in the first 5 months of 2023, Vietnam imported 4.61 million tons of iron & steel of all kinds, reaching 3.16 billion USD, down 29.7% in value over the same period last year.Currently, Vietnam mainly imports iron & steel products of all kinds from main markets including China with 2.49 million tons, up 14.5%, Japan with 737,000 tons, down 15.3%, Korea reached 409,000 tons, down 27.2%...compared to the same period in 2022.4. MRS Steel provides prestigious Vietnamese steel import solutionsMRS Steel is one of the units sourcing and supporting the export of Vietnamese steel to the markets of ASEAN, Europe, the United States, the UK, India, Turkey,... With many years of experience in the field of supplying cheap and quality steel from Vietnam's largest steel corporations such as Hoa Phat Group, Hoa Sen Group, Ton Nam Kim, Ton Dong A,... MRS Steel is proud to be a reliable partner for importers all around the world.When buying domestic products, international customers often face language, market, customs policy, and duty rate difficulties. In addition to acting as an intermediary to help importers connect with Vietnamese manufacturers, MRS Steel also supports procedures, delivery processes, customs clearance, the commitment that goods are imported on time, and your request.Facing the continuous changes in the world economy, updating the latest steel import and export data will help importers have more data and bases to make the best purchasing decisions. For any questions and contact to buy Vietnamese steel, please contact MRS Steel via Whatsapp: +84 76 911 2358

According to the latest iron and steel market report, steel sales volume in May reached more than 2.3 million tons, up about 13.6% month over month and on par with the same period in 2022. This is the best result from the beginning of the year so far, and the steel industry is expected to recover in the fourth quarter of 2023.Demand for steel market is still weakAfter a period of consecutive price increases, the world steel market tends to slow down and pause at 113.37 USD/ton, a slight increase of about 0.71%. Global steel demand has the potential to start recovering in 2023 after falling 3.2% in 2022. Accordingly, two regions, including East Asia and Southeast Asia, will contribute most of the growth in demand in 2023.In the first half of 2023, the iron ore market recorded many fluctuations when it sometimes reached 130 USD/ton, thanks to the recovery of China - the world's No. 1 steel market. However, iron ore prices then fell again due to slower global economic growth.The iron and steel market slowed down because the Chinese government's economic recovery stimulus policies were not strong enough. Especially in the real estate sector, which consumes a lot of iron and steel and is the driving force for the economic development of this country.Similarly, the North American market, the region that consumes about 7.5% of global steel production, is also facing high-interest rate pressure, bringing the risk of recession. In the European market, which currently accounts for more than 8% of steel consumption, after raising interest rates in June 2023, steel demand in this region is expected to decrease by about 1% in 2023 before recovering by about 5.4% by 2024.The steel market rises up against difficulties and challengesIn 2022, Vietnam will be the 13th largest steel exporter in the world, accounting for 3.4% of the global market share, and it will also be the 12th largest steel importer in the world, accounting for 5.5% of the world's total. This contributes to affirming the position of Vietnam's steel industry in the world steel market. The low iron and steel prices will benefit the imports of Vietnamese enterprises. In the first 5 months of the year, the whole country imported about 4.6 million tons of iron and steel, down about 12.4% in volume and nearly 30% in turnover due to the much lower iron and steel prices. In contrast, Vietnam exported nearly 4.3 million tons of iron and steel, up 10% over the same period last year.The domestic steel market weakened, forcing factories to reduce prices to increase competitiveness and boost consumption. In the first 5 months of the year, nationwide steel production reached more than 11 million tons, down 22% compared to last year. Steel products sold reached 10.4 million tons, down 19.3%; exports reached more than 3.1 million tons, up 2.6%.With the above signs, it can be seen that the steel market is moving in a positive direction. Difficulties will ease at the end of the year, especially in the fourth quarter of 2023, because this is the period of high demand when the works are accelerated. Besides, public investment will continue to support domestic steel demand.