Steel News

As one of the first steel conglomerates in the United States, US Steel has played a crucial role in the development of the country's steel industry. However, currently, US Steel has been acquired by Japan's Nippon Steel for $14 billion USD.US Steel was founded in 1901 by some of America's most prominent tycoons, including Andrew Carnegie, J.P. Morgan, and Charles Schwab. The company played a vital role in the recovery of the American industry after the Great Depression and World War II. In 2022, US Steel ranked as the 24th largest steel producer globally and the second-largest in the United States, following Nucor Corporation.In recent times, the stocks of US Steel, based in Pittsburgh, have been performing poorly after several quarters of declining revenue and profits, making the company an attractive acquisition target for competitors. On December 18, 2023, Nippon Steel announced an agreement with US Steel to acquire the company for $14.1 billion USD. This deal positions Nippon Steel to expand global crude steel capacity toward the goal of 100 million tons. This strategic move comes after Nippon Steel outbid competing rivals, including Cleveland-Cliffs Inc., in an auction.According to the World Steel Association, in 2022, Nippon Steel's production of high-quality crude steel reached 44.37 million tons, ranking fourth globally. Therefore, the acquisition of US Steel will elevate Nippon Steel to the third position in global steel production. This represents a significant step for Nippon Steel in its efforts to strengthen its position in the steel industry and enhance production capabilities on a global scale.Accordingly, after announcing the acquisition of the US Steel Group, Nippon Steel's stocks experienced a nearly 5% decrease. The stock decline occurred as shares of the steel manufacturer based in Tokyo opened with an excess of sellers, leading to a trading price of around 3,085 yen, marking a 4.7% decrease compared to the previous day's closing value.The acquisition takes place at a time when the steel industry is facing several challenges, including fluctuating demand and the need for technological advancements to reduce carbon emissions. Nippon Steel's move to acquire US Steel is expected to create a synergistic strength that could lead to more efficient production and help ensure a more stable supply of raw materials for Nippon Steel.US Steel has announced that the transaction with Nippon is expected to conclude in either the second or third quarter of 2024, depending on regulatory approval. However, the Committee on Foreign Investment in the United States, an agency that carefully examines transactions to identify potential national security risks, is expected to reassess this deal. If the agreement is not approved in this case, Nippon will owe US Steel USD 565 million.Here is the latest information on Nippon Steel's acquisition of the US Steel plant in the United States. However, there is still no official result in this matter. Stay tuned to MRS Steel, as we will provide the most up-to-date and accurate information on this transaction for our readers.

Nam Kim's business activities are expected to benefit directly when steel demand in a series of key export markets is forecast to grow strongly in 2024.1. Nam Kim steel exports will grow strongly by the end of 2023According to the latest report of the World Steel Association, global steel demand in 2023 is estimated to increase by 1.8% compared to 2022, a positive improvement compared to the decrease of 3.3% in 2022. In 2024, global steel demand is expected to continue to increase by 1.9%, reaching 1.84 billion tons with main export markets from the European Union (up 5.8% compared to 2023), India (up 7.7%) and the ASEAN region (up 5.2% compared to 2023).This creates favorable conditions for several Vietnamese steel enterprises, especially Nam Kim Steel Joint Stock Company. NKG is one of the largest steel export brands in Vietnam with strength in galvanized steel products. More than 60% of the group's consumption comes from key markets such as the EU, ASEAN and Australia.Besides, Nam Kim Steel is enjoying the lowest anti-dumping duty rate in many Vietnamese steel import markets such as Canada, Mexico, Australia and Malaysia.Latest data shows that Nam Kim Steel's main export markets are all in the group with a positive recovery in steel output in the first 10 months of 2023 like the EU region (up 86.2% over the same period in 2022) and Australia (up 9.1%).Regarding future development orientation, Nam Kim Steel is focusing on exploiting the EU, Australia, ASEAN markets, then the US due to barriers of tax rates of up to 25% as well as high Vietnam-US freight rates.Currently, Nam Kim Steel is in the top 3 enterprises with the largest market share in Vietnam (accounting for 17.3%). Notably, for steel pipe products, Nam Kim Steel is experiencing continuous market share growth in recent years. In 2022, NKG's steel pipe consumption growth rate was 3 times higher than the growth rate of the entire industry, accounting for 7.4% of the entire market share.2. Vietnamese steel benefits from the gradual recovery of steel pricesThe business activities of Nam Kim in particular and steel businesses in general will continue to benefit from the recovery in domestic steel prices. After 19 consecutive price reductions in the first 9 months of 2023, steel prices of all types in Vietnam have begun to recover with 3 consecutive price increases since the end of November 2023. The Vietnam Steel Association (VSA) predicts that domestic steel prices may increase slightly in the near future with a range of 100,000 - 150,000 VND/ton.The reason for the increase in domestic steel prices comes from the increase in input costs (iron ore, electricity, steel scrap,...) along with a clear increase in world steel prices. Hot rolled steel prices in the US and EU from the beginning of October 2023 have increased by 1,146 USD/ton and 727 USD/ton, respectively. World construction steel prices also increased dramatically in early November 2023 when they surpassed 3,800 CNY/ton.Global steel prices increased mainly due to limited steel supply and prolonged delivery times due to the impact of military and political conflicts. At the same time, a series of steel furnaces in the EU temporarily stopped operating for maintenance while steel demand is still increasing. In addition, the Chinese government also promotes recovery of the real estate market, boosting demand for steel in the near future.

In November 2023, both production and consumption in Vietnam's steel industry experienced growth. Specifically, nationwide steel sales reached over 2.5 million tons, marking a 30% increase compared to the same period last year and reaching the highest level since the beginning of the year. Meanwhile, finished steel production reached 2.4 million tons, reflecting a 34.4% increase compared to the same period.The Vietnam Steel Association (VSA) reported an improvement in the consumption of finished steel in the domestic market in November compared to the previous month and the same period last year for most steel manufacturing and trading enterprises. In particular, sales of various steel types reached over 2.5 million tons, up 13% from the previous month and 30% compared to the same period in 2022. The growth in steel consumption has been consistent over several months, signaling a recovery for the steel industry. Meanwhile, the production of finished steel during this period amounted to 2.4 million tons, up 3% from October and 34.4% compared to the same period last year.In the first 11 months of the year, the steel industry produced 25 million tons of finished steel, down by 7.8% compared to the same period last year. Steel consumption reached 23.7 million tons, declining by 5.6% compared to the sales volume in the first 11 months of 2022. Specifically, steel exports during this period amounted to 7.4 million tons, marking a 29% increase compared to the same period.Hoa Phat, a leading enterprise in the steel industry, observed its highest sales volume since the beginning of the year. Specifically, sales of construction steel, hot-rolled coil (HRC) and steel billets reached 709,000 tons, marking a 12% increase from October. Notably, sales of high-quality construction steel by Hoa Phat during this period reached 410,000 tons, indicating a 21% surge compared to the same period last year.The company's representative stated that the domestic steel industry is on the rise due to the beginning of the construction season and is partly driven by policies encouraging the disbursement of public investment capital. According to the assessment by VSA, the sales volume of construction steel has increased, partly due to infrastructure projects such as the North-South expressway and the ongoing development of new airports, which have accelerated progress alongside several other projects.The steel industry has experienced significant price fluctuations in recent months, with steel companies continuously adjusting prices upward from November onwards. According to VSA, the consistent price hikes in steel are primarily due to the rising costs of raw materials used in steel production such as coal, iron ore, scrap steel and hot-rolled coils, showing no signs of slowing down.The selling prices of finished steel have been increasing at a slower pace compared to the rising costs of raw materials. This is one of the difficulties that the steel industry is facing.In the upcoming period, the price of this commodity is forecast to continue rising due to a narrow supply of iron ore, while construction demand is expected to increase. This will be an opportunity for the steel industry and steel stocks in 2024.

The global steel demand for wind turbines industry is expected to experience a significant surge of 45% over the next decade, driven by the escalating capacity and size of turbines. Specifically, the projected consumption output within the industry is anticipated to rise from 10.5 million tons in 2023 to 15.1 million tons by the year 2032.The trend in the steel demand for wind turbines sector in next decadeSteel has long been the primary material for constructing wind turbines due to its strong structural properties and corrosion resistance. Consequently, with the increasing shift towards renewable energy, the rising global steel consumption in the wind energy industry indicates a clear signal. As of 2023, the steel demand for wind turbines stands at 10.5 million tons and this figure is projected to surge by 45% in 2032 due to the growing capacity and size of turbines.Data on the development of wind turbine sizes is annually documented. According to this information, the average size of onshore and offshore wind turbines in projects recorded from 2019 to 2022 was 2.9MW and 6.2MW, respectively. In 2023, these figures experienced a significant increase, reaching 4.3MW for onshore and 9.2MW for offshore turbines. Notably, in offshore wind turbine projects, industry manufacturers are currently aiming to introduce the next generation of turbines with an average capacity ranging from 15 MW to 20MW, which is double the current average capacity.The steel demand for the offshore segment is believed to be significantly higher than that for onshore, with the steel consumption growth rate for onshore reaching only 32%, whereas for offshore, this figure rises to 101%. Typically, steel constitutes 80% of the composition of a wind turbine. However, offshore turbines require more steel. The reason is that the foundations of offshore wind turbines must be made of steel instead of concrete and cement used onshore because steel provides better corrosion resistance in a marine environment.Predictions for steel consumption scenarios in wind turbine projectsThe production of larger turbines will entail a higher demand for steel. Therefore, the steel consumption in the wind energy industry is anticipated to grow significantly with the following predicted scenarios over the next decade:Small Capacity Turbine ProjectsTurbines classified under the small capacity category typically have a capacity of 2MW for onshore types and 6.2MW for those installed offshore. Among the installed projects, these turbines constitute the largest market share, yet they have the lowest steel consumption. Specifically, the total steel demand for wind turbines over the next 10 years, starting from 2023, is estimated to reach 124.8 million tons. This is equivalent to consuming 107 tons of steel per 1 MW for onshore turbines and 119.5 tons of steel per 1 MW for offshore turbines.Medium Capacity Turbine ProjectsThe assumed scenario for the trend in steel consumption for medium-capacity turbines (3.45-5MW for onshore and 9MW for offshore) over the next decade is expected to reach 128.7 million tons. The projected steel consumption rate per MW is estimated to be 110 tons/MW for onshore and 125.8 tons/MW for offshore.Large Capacity Turbine ProjectsOver the ten-year period from 2023 to 2032, projects involving large-capacity turbines (6 MW-7.2 MW for onshore and 15 MW and above for offshore) are predicted to see rapid development, capturing a significant market share within five years, by the mid-decade. The total steel consumption for these projects is forecasted to reach 130 million tons, with a predicted steel consumption rate of 113 tons/MW for onshore and 132 tons/MW for offshore. With the future deployment strategies of large-capacity wind turbines in the energy sector, the anticipated surge in steel demand is expected to create expanded opportunities for global steel manufacturers. This trend signifies a broader scope of consumption beyond traditional sectors such as construction and automotive. The renewable energy sector, particularly the wind energy industry, continues to be one of the top potential markets for steel consumption, with clear indicators of continuous growth. To gain further insights into the steel applications in wind turbines, please refer to additional articles in our Steel Blog! 

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.