Steel News

The Trade Defense Agency (Ministry of Industry and Trade) has just warned about the risk of Canada investigating and applying trade defense measures to steel imported from Vietnam.According to the Trade Defense Agency, with the policy of monitoring and tightening management of steel imported to protect the domestic market, it is expected that in the coming time, Canada will continue to research and investigate products, type of steel imported from Vietnam. The items targeted by Canada are Vietnam's main export products including concrete reinforcement steel, anti-corrosion steel plates, steel coils and oil pipeline steel. This item is widely used in prestressed concrete wire (PC Wire), umbrella frames, tire bead wire (TBW), piano wire, wire cores for conductors, cables used in elevators and cranes, welding electrode cores and nails.For Canada alone, there have been 18 trade defense cases. Of these, there have been eight trade defense cases with steel imported from Vietnam. Specifically, there are 5 anti-dumping cases, 2 anti-subsidy cases and 1 self-defense case. According to statistical data from Trademap, an updated database system on the trade situation of countries established by the International Trade Center (ITC), Vietnam's export turnover of steel wire products to Canada has increased rapidly in recent years. For example, in 2020, Vietnam exported about 10 million USD of steel wire to Canada. The export turnover of this item doubled to 21 million USD in 2021 and continued to grow strongly, reaching about 40 million USD in 2022.This shows that our country's goods exports to Canada are being actively supported by the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), effective January 2019. Currently, Vietnam is Canada's leading trading partner in ASEAN and Canada's 6th largest trading partner in the group of 40 Indo-Pacific countries.The absolute increase in value is one of the criteria for Canada to conduct an investigation and apply trade defense measures against Vietnamese steel wire. Based on this database, the Trade Defense Agency issued a warning about the risk of Canada investigating and applying trade defense measures to steel imported from Vietnam and recommended that businesses, related associations and businesses review the export of steel wire to the Canadian market (refer to the following HS codes: 7223, 7213, 7227 and 7306).According to experts, this move is a wake-up call to advise businesses to proactively research regulations and procedures to respond in case Canada conducts an investigation into trade defense cases against imported products, such as steel imported from Vietnam. In cases of investigation, the association and related businesses need to have a strategy to participate and handle the case, fully cooperate at the request of the investigation agency and regularly coordinate to receive support from the Trade Defense Agency. Canada is a potential market for Vietnam's exports. If goods are handled and recalled, it will cause great damage to domestic businesses.Above is information about the Trade Defense Agency warning businesses to be careful because steel imported from Vietnam may be investigated by Canada. We will continuously update information about this incident; please follow the website to get the latest information about this incident.

In January 2024, Vietnam exported more than 1.16 million tons of steel with a value of more than 822.65 million USD and imported nearly 1.49 million tons of steel with a value of 1.06 billion USD. Notably, Vietnam's steel exports in 2024 will have many positive bright spots thanks to rising world steel demand and support from developed economies.1. Steel export situation in January 2024According to statistics from the General Department of Customs, as of January 2024, Vietnam's steel exports have increased for 4 consecutive months, reaching more than 1.16 million tons with a value of 822.65 million USD, an increase of 7.1% in price and 7.4% in value compared to the previous month; increased by 72.6% in volume and 80% y/y in 2023. The average export steel price also increased by 0.3% over the previous month and increased by 3.9% over the same period in 2023, to 709 USD/ton.2. Steel import situation in January 2024Conversely, steel imports in January 2024 reached nearly 1.49 million tons with a value of 1.06 billion USD, an increase of 27.3% in volume and 22.3% in value compared to December 2023; increased sharply by 151.2% in volume and 101.6% in value y/y in 2023. The average imported steel price reached 712 USD/ton, down 3.9% over the previous month and down 19.7% over the same period in 2023.Steel scrap imports in January 2024 also decreased after 3 consecutive months of increase, reaching 356,301 tons with a value of 140.96 million USD, down 18.8% in volume and 9.6% in value compared to the previous month. The average price of imported scrap steel reached 396 USD/ton, up 11.3% over the previous month and up 2.7% over the same period in 2023.3. Positive expectations for the steel industry in 2024The above positive results raise high hopes for the steel export market in 2024. Export volume in the following months can maintain growth thanks to a positive global demand outlook. According to the World Steel Association, world steel demand is expected to increase by 1.9% in 2024, demand from developed countries is expected to increase by 2.8%, of which the US and Europe will increase by 5.8% and 1.6%, respectively. On the other hand, steel demand of ASEAN countries (except Vietnam) is expected to increase by 5.2% in 2024, up 1.4% compared to 2023.It is expected that Vietnam's steel export output will improve in the first quarter due to the increasing difference between prices in North America and Europe compared to steel prices in Vietnam. In addition, Europe also issued sanctions and strictly controlled the import of semi-finished steel products from Russia while supporting the import of Vietnamese steel.

Recently, Pomina Steel plans to consider increasing the investment level of the Pomina 3 blast furnace project to VND 5,800 billion. At the same time, the company wants to establish a new legal entity with a strategic investor to comprehensively restructure the business.Pomina Steel Joint Stock Company has just announced the 2024 Extraordinary General Meeting of Shareholders documents with some notable content. Specifically, this steel manufacturer will submit to shareholders for review and approval of the settlement approval proposal and increase the blast furnace investment at Pomina 3 by more than 904 billion VND to nearly 5,880 billion VND. This additional adjustment is equivalent to an increase of 18% compared to the initial expected investment level. Pomina Steel Board of Directors requests shareholders to review, approve, and approve the above proposal so that the company can complete the project procedures.The Pomina 3 blast furnace has been deployed since 2019 and put into production in February 2012. Currently, according to the fourth quarter 2023 financial report, Pomina Steel recorded costs of up to 5,808 billion VND (accounting for more than 55% of total corporate assets) to implement the blast furnace and EAF furnace projects.In addition, Pomina Steel plans to submit to shareholders a comprehensive restructuring plan for Pomina through cooperation with strategic investors to establish a new legal entity, Pomina Phu My Joint Stock Company. In particular, Pomina Steel will contribute capital in kind to all land, factories, and equipment lines. Strategic investors contribute capital in cash. Strategic investors, charter capital, and ownership structure are expected to be presented specifically at the congress. Pomina Steel said that the strong restructuring, especially with the participation of strategic investors, is a milestone, marking an important turning point for the company. This strategic cooperation will provide the necessary capital for the company to restart the steel billet blast furnace. It is expected that Pomina Steel will operate the blast furnace again in the fourth quarter of 2024 after a period of shutdown to anticipate the return of real estate projects that are expected to recover strongly in the last months of the year.Previously, at the end of January 2024, Pomina Steel announced the temporary suspension of its plan to privately issue more than 70 million shares (equivalent to 20% of the company's charter capital) at a price of 10,000 VND per share to investors. Nansei Steel Strategy (Japan). These shares will be restricted from transfer for 3 years. Pomina Steel once expected to earn about 700 billion VND from the above capital sale deal to restructure and supplement capital for business activities.2023 was be an unfavorable business year for Pomina Steel, recording revenue of 3,281 billion VND, down 74.6% compared to 2022 and continuing to report a net loss of 960 billion VND compared to a reported loss of nearly 1,167 billion VND. in 2022. Thus, Pomina's total accumulated loss has reached nearly 1,271 billion VND, equivalent to 45.4% of equity. This is also the highest loss during the business's 25 years of operation.Pomina Steel's board of directors said the cause of the loss was mainly due to weak consumer demand, a sharp decline in steel prices, and the high fixed costs of the newly put into operation blast furnace project. Besides, the use of high financial leverage also "erodes" the profits of this steel company.Currently, Pomina Steel has three construction steel billet and rolling mills with a total capacity of 2.6 million tons. Of which, steel billet refining capacity is 1.5 million tons per year, and construction steel rolling capacity is 1.1 million tons. Pomina Steel currently focuses mainly on construction steel, with the key market being the southern provinces.

According to the World Steel Association (WorldSteel), in 2023, global crude steel production reached 1,888 million tons, with Vietnam contributing 19 million tons to this figure. Despite a 5% decrease in crude steel production compared to 2022, Vietnam's notable achievement is an upward shift in its ranking, reaching 12th place globally among the 71 countries listed.Vietnam's crude steel production decreased by 5% but climbed one position in the rankingsIn 2023, Vietnam achieved a notable milestone as its crude steel production surpassed that of Taiwan, securing the 12th position in the global rankings. This highlights a positive outlook for steel demand in Vietnam, despite the ongoing incomplete recovery of the domestic real estate market. Additionally, leveraging political advantages, countries in the Middle East view Vietnam as a promising destination for steel imports. Experts emphasize that Vietnam's steel export volume in 2023 also benefited partly from the weakened export activities of competing nations such as China, India, and Turkey, creating opportunities to boost production capacity in the country.Vietnam ranks among the top 12 countries with the highest global crude steel production in 2023Predictions for 2024 anticipate a positive recovery in both demand and steel prices in Vietnam, with raw material prices forecasted to significantly decrease. This is expected to lead to a substantial increase in the Vietanm steel industry's profit margins. The primary driving force for domestic steel consumption comes from the expected strong recovery in the civil construction sector, while the industrial and infrastructure construction segments are projected to sustain growth throughout 2023.Regarding the export sector, the World Steel Association notes that the growth in infrastructure construction activities in the ASEAN, U.S., and EU markets, coupled with the benefits from bilateral agreements, will boost Vietnam's steel export activities this year. Therefore, it is expected that Vietnam's crude steel production in 2024 will experience a more robust increase compared to the current year, driven by both domestic and international market dynamics.China and India are the two largest steel producers globallyChina has once again maintained its position as the leading country in the global steel industry. In the past year, 2023, the country produced a staggering 1,019 million tons, sustaining its production at a stable level after two consecutive years of decline. According to analysts from S&P Global Commodity Insights, China's steel production is anticipated to decrease by 0.5% in 2024 as domestic plants seek solutions to address excess supply issues along with weak profit margins. This outcome is expected to lead to another prediction that China's iron ore imports will decline due to the slowing down of steel production.The statistical chart of raw steel-producing nations for the current year also reveals a remarkable surge in India's production, driven by robust domestic demand and infrastructure projects supported by the government's ongoing initiatives. In 2023, India recorded a noteworthy growth, with a production increase of 11.8% compared to the previous year, reaching an impressive 140.2 million tons. Notably, amidst the global decline in steel demand, India continues to maintain its position as one of the countries with the highest growth rates in crude steel production and stands out as one of the few nations showing positive growth trends.The monthly crude steel production figures for China and the world in 2023Crude steel production in Europe decline from weak demandOverall, crude steel production in Europe is reported to have decreased by 6.7% in 2023 compared to 2022. Among the 71 countries listed, the majority of nations in the European region witnessed negative growth. Specifically, Germany, recording its lowest crude steel production since 2009 with around 35.4 million tons in 2023, marked a 3.9% decrease from the previous year. Similarly, the second-largest steel producer in Europe, Italy, also exhibited a 2.5% reduction in production to 21.06 million tons.The simultaneous decline in steel production can be attributed to low consumption demand and high energy prices, presenting challenges for factories in the region. The steel industry in Europe is grappling with high production costs due to increased energy prices since the conflict between Russia and Ukraine, alongside an influx of cheaper imported products that impose limitations on local steel manufacturers.The production downturn is not limited to domestic output; steel exports to the EU also witnessed a 5.57% reduction in 2023 compared to the same period. However, the growth rate of steel exports to new markets, including Western Asia and Central Asia, experienced a substantial increase. The persistence of inflationary cycles and the strong impact of trade protectionism are considered the primary impediments to steel exports from other countries to this region. 

In the past 2023, Vietnam's HRC export volume recorded exceeding 3.4 million tons, marking a 2.6-fold increase compared to 2022. In December alone, the HRC export volume reached 229 thousand tons, experiencing a 34% decrease compared to November but a significant 19% increase compared to the same period in 2022.Overview of Vietnam's HRC export situation in 2023While domestic steel consumption is perceived as sluggish due to low demand and the domestic real estate sector still showing few signs of recovery, the export volume is considered a rare bright spot in the overall challenging landscape of the steel industry in 2023. Specifically, the sales of HRC in 2023 reached 6.8 million tons, a 10% increase compared to 2022, constituting nearly 26% of the overall steel consumption structure in 2023.Prominent in this field is the HRC export sector, significantly contributing to the overall achievements of the industry. With a figure of 3.4 million tons, the HRC export segment not only accounted for over 50% of the total sales volume but also recorded an impressive 2.6-fold increase compared to the same period in 2022. This is not only a positive sign of the competitiveness of the steel export industry but also reflects innovation and creativity in business strategies, enabling the Vietnamese steel industry to rise above challenging circumstances.The Vietnam’s HRC export volumes by month in 2022 and 2023Formosa Ha Tinh and Hoa Phat continue to maintain their leading and second positions in the production and export of HRC (hot-rolled coil). Formosa's HRC export volume in 2023 reached 2.2 million tons, surging by 46% compared to the export volume in 2022. Additionally, HRC was the only product that recorded positive sales growth for Hoa Phat, with a total volume of 2.8 million tons, a slight 6% increase compared to 2022, including an HRC export volume of 1.15 million tons.Among steel products, hot-rolled coil stands out as the product with the most robust growth. Some experts believe that the hot-rolled coil (HRC) market will recover more quickly due to ongoing strong consumption, especially in the mechanical and processing industries. Compared to construction steel, hot-rolled coil (HRC) not only offers more attractive pricing but also reflects a significant price disparity due to the construction industry's ongoing difficulties and substantial impact from the real estate market, while the mechanical and manufacturing sectors show better signs of recovery.India and Italy are the two main HRC import markets for VietnamBased on customs data, Italy and India emerge as the two largest HRC import markets for Vietnam in 2023. Italy, in particular, imported 1.1 million tons of HRC steel from Vietnam in the past year and in December alone, it continued to lead the HRC import market with a volume of 80,470 tons. Alongside Italy, India became the second-largest importer of HRC for Vietnam, with a total HRC import volume of 694,000 tons in 2023.Although India has been evaluated as a potential steel import market and consistently maintained its position as Vietnam's largest HRC importer in previous months, its import volume significantly decreased in December, plummeting over 85% compared to the previous month, reaching 20 thousand tons. Sources indicate that the primary reason for this decline is the anticipated reduction in India's domestic demand for hot-rolled coil steel, mainly attributed to the upcoming general elections causing disruptions in pricing. Currently, the country's mills are seeking solutions to address excess production by increasing exports to the European market.Top 10 countries with the largest imports of Vietnam's HRC in 2023Malaysia and Indonesia consistently stand out as two countries with stable HRC import volumes from Vietnam, regularly appearing in the top 5 largest HRC importers each month. In 2023, the HRC import volumes for Malaysia and Indonesia reached 464,874 tons and 394,786 tons, respectively. Additionally, in the top 10 HRC importers list, Mexico is the sole representative from the Americas with an import volume of 157,322 tons, while other predominantly European countries include Spain, Portugal, and Belgium.Predictions for the future of Vietnam's HRC export market in 2024The predominance of countries in the European region on the list of HRC importers for Vietnam in 2023 somewhat reflects the competitiveness and quality of Vietnamese steel products in the strategic expansion of export markets and shaping Vietnam's international steel industry position. However, the rankings on this list are expected to undergo significant changes in 2024, particularly among European countries.According to the customs statistics of the EU, as of January 5th, approximately 1.18 million tons of imported HRC are awaiting customs clearance in the EU for the first quarter of 2024, while the permitted quota is 923,594 tons. Within this quantity, the majority consists of shipments from Vietnam, Japan and several other countries. Under the EU's protective measures, any steel products imported beyond the quota will incur tariffs of up to 25%, unintentionally posing a new challenge for the export dynamics of Vietnamese HRC in 2024. Therefore, domestic HRC manufacturers will need to promptly adjust and implement new strategies to maintain their export market share and explore new consumer markets.MRS Steel regularly updates comprehensive information on HRC export volume and the list of importing countries in 2023 based on the latest customs data. If you have further inquiries about specific figures or weekly steel price lists directly from the factories, please contact us via WhatsApp at +84 76 911 2358 or email vanloc@mrssteel.com.vn for the fastest response possible.

With positive developments in consumption output in the final months of 2023, the Vietnam Steel Association (VSA) recently forecasted that the steel industry this year may increase by 10%, driven by expectations of global steel demand recovery.The steel industry and the positive signalsThe strong recovery of the steel industry this year is established against the backdrop of negative impacts from macroeconomic conditions and the 'freeze' of the real estate market in 2023. In the upcoming year, the steel industry is forecasted to experience significant growth, leading to the recovery of profits for businesses within the sector.As we step into 2024, the internal economy displays indications of recovery, bolstered by governmental and sector-specific policies that encourage public investment. It is anticipated that the steel industry in 2024 will witness a growth of 6.4%, reaching nearly 21.6 million tons. Not only in the domestic market, but the volume of Vietnam's steel exports is expected to sustain growth due to the increasing global demand for steel. Accordingly, the export of finished steel and semi-finished products is projected to rise by 12%, reaching nearly 13 million tons. This target is set based on the expectation that Vietnam's GDP will grow by 6–6.5% this year. The increased consumption of the steel industry is largely attributed to the signs of recovery in the real estate market in the fourth quarter of 2023 and real estate projects are expected to boost sales in 2024.The steel industry relies on the market's recoveryAt present, the economy has recorded some bright spots regarding policies to remove difficulties, promote public investment and stimulate economic growth issued by the government and various ministries. Accordingly, the Vietnam Steel Association (VSA) also forecasts that the prospects for Vietnam's steel production may increase by about 10% in 2024 and 8% in 2025 as the demand for steel from domestic economic sectors recovers.The forecast for the production of finished steel in the period 2024–2025 is expected to reach approximately 28–30 million tons, with domestic steel consumption ranging from 21-22.5 million tons. The primary drivers for steel consumption stem from the gradual recovery of the real estate market. The government and various ministries are actively investing in and developing infrastructure and implementing public projects. This concerted effort is poised to revitalize the domestic steel industry, leading to a surge in profits for steel manufacturers after a prolonged period of losses and inventory challenges. Although actual steel consumption by end consumers has not fully recovered as anticipated, the price surge at the beginning of 2024 was predicted by steel industry experts since the end of 2023, when production material costs continuously increased for several weeks. With the momentum of the recovery, steel prices are forecast to continue rising before the Lunar New Year, possibly surpassing the 15 million VND per ton mark.Therefore, all enterprises in the steel industry expect the government, as well as relevant ministries and departments, to implement stronger policies to support the real estate market and promote the development of the steel market in 2024.