Vietnamese steel export situation in H1 2024
Steel NewsDate: 21-08-2024 by: Ngoc Cam
The Vietnam steel export report for the first six months of 2024 shows an impressive recovery in the steel industry, with 6.49 million tons exported, generating nearly $4.78 billion. The U.S. accounted for the largest market share with 14.5% of total exports, followed by Italy and Cambodia. With the potential for export growth in the second half of 2024 and the 2025-2027 period, Vietnam’s steel industry is expected to continue conquering international markets, leveraging its competitive production costs and stable product quality.
The Vietnamese steel industry shines globally: 6.49 million tons exported in H1 2024, with the U.S. leading the way
Economic and social situation in June and H1 2024
In June and H1 2024, the economic and social situation continued its positive trend, with many sectors achieving better results than in May and the same period in 2023. The construction sector increased by 7.34%, the highest growth compared to the same period in the years 2020-2024. However, the growth of the steel industry has not been stable, with production and sales of steel products indicating that domestic demand has not fully recovered.
Steel production and sales situation
June 2024
Vietnamese crude steel production reached 878,343 tons, down slightly by 0.4% m/m but up 27.4% y/y. Finished steel production reached 2.463 million tons, down 4.95% m/m but up 22.4% y/y. Construction steel, HRC, galvanized steel and steel pipes maintained high growth rates, while cold rolled coil (CRC) production decreased by 10.5%.
Finished steel sales reached 2.362 million tons, down 7.53% m/m but up 9.3% y/y. Finished steel exports reached over 662,000 tons, up 10.9% m/m but down 8.9% y/y.
First six months of 2024
Finished steel production reached 14.427 million tons, up 10.1% y/y. Finished steel sales reached 14.274 million tons, up 14.4% y/y, with exports reaching 4.216 million tons, up 8.6% y/y.
Steel import and export situation
Imports
Vietnam imported 1.547 million tons of steel in May 2024, up 20.57% m/ and up 84.72% y/y. In the first five months of 2024, Vietnam imported 6.919 million tons of steel with a value of over $5.015 billion, up 50.21% in volume and up 27.47% in value compared to the same period in 2023.
Exports
In May 2024, Vietnam exported 1.117 million tons of steel, up slightly by 0.78% m/m but down 1.37% y/y. The export value reached more than $797 million, down 4.53% m/m and down 14.36% y/y.
Top 3 largest export market share in the first 6 months of 2024
In H1 2024, Vietnam exported 6.49 million tons of steel, earning nearly $4.78 billion at an average price of $735.8/ton. The U.S. was the largest market, accounting for 14.5% of total volume and 16.5% of total export value, followed by Italy and Cambodia.
Export volume Vietnamese types of steel in the first 6 months of 2024
Market assessment and forecast for Vietnamese steel
The Vietnamese steel market in H1 2024 has shown positive signs of recovery, with prospects for further export growth in the second half of 2024 and the 2025-2027 period. According to the WSA report, global steel demand is expected to grow slightly in 2024 and 2025, with an average annual growth rate of 2.3%. As one of the largest steel producers in Southeast Asia, Vietnam will continue to benefit from this trend. OECD Steel Market Developments also indicates that steel prices may continue to fluctuate due to changes in raw material supply and protectionist measures from major economies. However, Vietnam has the advantage of competitive production costs and stable product quality, and it will continue to be a major steel supplier to the international market.
Top countries importing Vietnamese GI in the first 6 months in 2024
In addition, favorable international trade and tariff policies from the U.S. and EU will also be key factors influencing Vietnam's steel exports. Starting August 1, 2024, Chinese steel exports to the U.S. are subject to a tax rate of up to 50%, while Vietnamese steel only faces a 25% tariff under Section 232, making Vietnamese steel a more optimal choice for U.S. importers.
For the latest updates on the steel market and Vietnamese steel import-export situation, customers can contact MRS Steel via WhatsApp: +84 769 112 358 or Email: vanloc@mrssteel.com.vn for 24/7 support.
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