Steel News

According to Euroactiv, the Czech Republic recently requested the European Union to exempt Russia from import sanctions because the country couldn’t find alternative steel sources of supply. Prolonged shortages could cause severe damage to the manufacturing industries in the Czech Republic.1. The Czech Republic's industry heavily affected by the lack of Russian steel supplyThe EU imposed a ban on importing Russian iron and steel from March 2022 in response to the conflict between Russia and Ukraine. Accordingly, the European Commission (EC) directly targets Russian steel manufacturers by removing the protection mechanism for steel products imported into the region.Currently, the Czech Republic mainly imports heavy steel plates from Russia's Novolipetsk metallurgical mill until the contract expires at the end of 2024. The total steel consumption in the Czech Republic is estimated at around 500,000 tons per year, distributed to important industries such as construction and automobile manufacturing.Jozef Sikela, the Minister of the Czech Ministry of Industry and Trade, stated to the press “In the current situation of the construction industry, such as the construction of bridges, we cannot do without steel”. The Czech government has sent a request to the European council to exempt the ban on importing heavy sheet steel from Russia.Despite efforts to find alternative solutions for steel supply apart from Russia, they haven't found suitable partners yet. Currently, there are only a few heavy steel plate manufacturers in the world. The government of this country also contacted a number of Chinese factories but was unsatisfied with their product quality and supply capacity.According to the Czech Ministry of Commerce, the government is looking to ask the EU for an exemption from the ban on Russian steel import until 2028. Besides the Czech Republic, countries such as Italy and Belgium are also pushing the EU to lift restrictions on Russia's steel supply.Recently, the EU has tightened restrictions on importing iron and steel products from Russia by requiring importers to prove that their raw materials don't originate from Russia.Facing European sanctions, not only iron and steel but also products such as coal and crude oil are also significantly affected. This forces Russia to boost steel exports to other markets like Türkiye or other countries in Asia by competing on price with China.2. Solution to import Vietnamese steel to replace supply from RussiaCurrently, Vietnam is in the top 13 countries with the largest crude steel output globally, so it is fully capable of exporting large volumes with 100% Vietnamese input materials. In particular, Vietnam's largest steel corporations such as Hoa Phat, Formosa, Nam Kim,... can meet customers' steel standards and technical requirements.According to statistics from the General Department of Customs, as of October 2023, Italy is Vietnam's largest steel import market with 1.35 million tons, an increase of 128%. In addition, the rate of steel exports to the EU market also grew positively over the same period in 2022. According to the European Steel Association (EUROFER), Vietnam accounted for 8.1% of the total amount of finished steel products imported into Europe by the end of August 2023. Another positive signal for Vietnam's steel industry is that the proportion of Europe importing finished steel products from Turkey, China and India decreased while imports from Vietnam increased by 15%.The above data has proven that Vietnam is one of the heavy steel plate import markets that the Czech Republic can consider. In the context of the prolonged conflict between Russia and Ukraine and EU sanctions showing no signs of lifting, proactively finding new sources of supply to stabilize production is urgent. Vietnam has advantages in quality, price, trade defense measures, political relations,... helping Czech importers benefit better than other markets.Above is the latest information about the steel import situation of the Czech Republic in particular and the EU in general. If you need to learn about the market, products and import of Vietnamese steel, please contact MRS Steel via Email vanloc@mrssteel.com.vn for the most thoughtful support.

The steel industry in Vietnam, along with the global steel industry, is aiming to achieve carbon neutrality by 2050. Consequently, in recent times, the Vietnamese steel industry has undergone significant innovations and remarkable developments, contributing to the country's modernization and industrialization process.From 2015 until now, the steel industry in Vietnam has made significant strides and grown substantially, positioning itself as the 13th largest producer of crude steel in the world and leading ASEAN in both steel production and consumption of finished steel products. Presently, there are over 300 enterprises across the country engaged in the production and trade of iron and steel, contributing significantly to the growth and development of the steel industry.The Deputy Chairman and Secretary-General of the Vietnam Steel Association, Mr. Dinh Quoc Thai, highlighted that the Vietnamese steel industry has been making efforts to digitize, optimize technology and efficiently utilize energy resources. Some steel enterprises have leveraged surplus heat to generate electricity, meeting most of the plant's power needs, thereby reducing adverse environmental impacts and showing promising initial results. However, the steel industry still bears responsibility for 7-9% of the total national emissions and 45% of the industrial processes identified in the national strategy on climate change. Hence, the Vietnamese steel industry needs to move towards a green growth strategy to achieve the goal of achieving carbon emissions of "0" by 2050.Currently, green development has become a global imperative to limit and eliminate the adverse impacts of climate change on socio-economic growth. The steel industry in Vietnam possesses a full range of existing technologies available worldwide, including blast furnace technology, oxygen furnace technology and electric furnace technology. Additionally, there are some other technologies like direct reduction technology; however, the adoption of this technology is currently at a modest level.Additionally, Vietnam's steel industry is actively implementing more advanced technologies and production processes to aim for greener production. This encompasses utilizing more advanced technologies to reduce emissions, recycling raw materials and optimizing production processes to minimize environmental impact. Steel manufacturers can adopt recycling technologies to reuse materials like scrap steel, reducing waste output and applying environmental protection measures throughout the production process. This not only helps reduce negative environmental impacts but also promotes sustainability and efficiency in production. Furthermore, governmental support and investments in research and technology development play a pivotal role in driving the steel industry towards greener production.This is indeed the biggest challenge facing the Vietnamese steel industry in the upcoming period, but simultaneously, it represents a significant opportunity for the steel sector to innovate, modernize, and evolve into a technologically advanced and sustainable industry.

Scrap steel is an important raw material used in production, especially with the recent strong trend of environmental protection. In 2023, the scrap steel consumption showed unfavorable indices; however, simultaneous forecasts consistently indicate the industry's recovery and growth in the coming years.Global scrap steel consumption overview 2023According to the Bureau of International Recycling (BIR), the global market for scrap steel consumption faced challenges in the first half of 2023, experiencing decreased consumption across various countries and major regions compared to the same period last year. Additionally, global scrap imports in the first half of the year decreased by 8%, totaling 27 million tons compared to 2022.The decline in global scrap steel consumption and imports is directly related to the reduction in steel production this year, as the primary purpose of utilizing scrap steel comes from manufacturing. Specifically, global steel production in the first half of the year decreased by 1.1%, reaching 943.9 million tons. Significant regions experienced even more negative indices, notably with EU steel production dropping by 10.9% from January to June, and North America showing a 3.5% decline.Despite a 2.9% decrease in the utilization of scrap steel, China remains the largest consumer of scrap steel in the first half of 2023, reaching 116.2 million tons. Similarly, the top three countries leading in scrap steel import volumes in the first half of 2023 were Turkey at 9.6 million tons (a 22% decrease compared to the same period), followed by India at 5.25 million tons and the United States at 2.5 million tons.Notably, Turkey, previously a significant consumer of scrap steel (30 million tons in 2022), experienced a 16.4% decrease in scrap steel imports in the first nine months of 2023, reaching only 14.1 million tons. Reports indicate that the majority of Turkey's scrap steel imports were sourced from the EU. However, since 2022, Turkey's consumption of scrap steel has declined due to domestic demand and challenges in flat steel exports amidst increasing inflation and a depreciating lira.Scrap steel consumption prospects in coming yearsAmidst the global steel industry's focus on reducing carbon emissions from steel production, scrap steel is viewed as a strategic raw material to achieve carbon neutrality among steel manufacturers. Using scrap steel in electric arc furnaces (EAF) is the most straightforward approach to reducing CO2 emissions.Presently, increasing investments and EAF usage signify optimistic future consumption trends for global scrap steel. The current percentage ratio between basic oxygen furnace (BOF) and EAF steel production stands at 70/30. However, predictions suggest a shift to 60/40 by 2030. The EU is preparing to include scrap steel in the list of strategic raw materials in the green steel production trend. According to the International Rebar Producers and Exporters Association (IREPAS), EAF proportions in steel production in Europe, currently at 43.7%, are anticipated to significantly increase in the next 3-5 years.China also aims to enhance scrap steel utilization in production to reduce reliance on imported iron ore and lower carbon emissions. According to the Ministry of Industry and Information Technology (MIIT), the country could achieve EAF capacities of 100-200 million tons by 2030. The growth in scrap steel consumption is estimated to surge, from 260 million tons in 2022 to over 350 million tons by 2030.As of now, the EU remains one of the largest exporters of scrap steel, with approximately 9 million tons exported in 2023. However, some viewpoints suggest that the shifting production trends among European steel suppliers may transform the region into a primary scrap steel importer within the next 5 years. This could increase the demand for imported scrap steel to serve new production processes, transitioning the region from an export-driven role to a scrap steel importer.It is evident that in the near future, most countries will prioritize domestic scrap steel consumption rather than exports. However, current scrap collection rates fail to meet annual production needs, prompting countries to compete in accessing scrap steel sources through recycling initiatives or imports from other nations. This trend could simultaneously create new opportunities for countries to advance recycling industries and establish cleaner and more efficient steel production processes in the future.

The steel industry in Vietnam and globally is showing positive signs, forecasting a resurgence in a new cycle for the steel sector. With the increasing demand for steel, the market anticipates a significant acceleration in business outcomes next year.The general situation of the global steel industryWith the global economy continuing to decline under the strain of tightened monetary conditions impacting the world economy at large and the steel industry in particular, steel production slowdowns are evident in several key markets such as Japan, South Korea, Russia and others. While there's a prevailing trend of decline in the market, there are still discernible signs of recovery. In the first nine months of 2023, global crude steel production reached 1.4 billion tons, marking a 0.1% increase compared to the same period in 2022. This uptick serves as a bright spot, indicating a gradual resurgence in the steel industry.With its consistent dominance, accounting for over 50% of the annual global steel production, China's steel industry significantly influences the worldwide steel sector. Even steel prices within China's domestic market have a profound impact on the global steel market. Historical data also indicates that steel prices in Vietnam tend to exhibit quite similar fluctuations, sometimes responding at a slower pace compared to the fluctuations seen in Chinese steel prices.With Chinese steel prices nearly hitting their lowest levels in 2017 and showing signs of recovery in the third quarter of 2023, thanks to favorable export markets, there's an anticipation for a positive impact on the overall global steel price landscape. This also suggests a potential resurgence in demand in the largest steel markets among developed nations, including the Vietnamese steel industry.The Vietnamese steel industry is on the verge of recoveryIn Vietnam's market specifically, the steel industry anticipates a robust resurgence as the real estate market revives from 2024 onwards. Simultaneously, the government is vigorously expediting public investment disbursement on the largest scale ever seen. Most key national projects have commenced this year, indicating that the period from 2024 to 2026 will witness a dense construction phase, generating substantial demand for steel.The demand for steel has somewhat improved in the latter months of the year. In fact, several steel industry enterprises are experiencing positive business outcomes and substantial consumption. According to the financial report for Q3/2023 from Hoa Phat Group Joint Stock Company, their net profit reached approximately 2,000 billion VND, a significant improvement from the loss of 1,800 billion VND in the same period last year. The recovery in net profit is attributed to enhanced sales volume, reduced input material costs, and improved inventory management.According to assessments by multiple financial organizations, in the upcoming recovery phase of the steel industry cycle, Hoa Phat Group Joint Stock Company is expected to be the largest and first beneficiary due to its advantages in scale, dominant market share in various product segments, as well as its strong financial capacity.

The Ministry of Industry and Trade has just announced receiving information from India's Directorate General of Trade Remedies about issuing a questionnaire for the sunset review of countervailing duties on stainless steel welded pipes from China and Vietnam.The Trade Remedies Authority specifies that a sunset review is conducted just before the expiration of a 5-year period from the date of the official decision on anti-dumping duties or from the date of the review results (if the review covers both anti-dumping and damage).The tax imposition was issued by the Indian Ministry of Finance and became effective for a period of 5 years starting on September 17, 2019. The goods under review are stainless steel welded pipes falling under the HS codes: 7306 40 00, 7306 61 00, 7306 69 00, 7304 11 10, 7304 11 90, 7304 41 00, 7304 51 10, 7304 90 00, 7305 11 29, 7305 90 99, 7306 11 00, 7306 21 00, 7306 29 19, 7306 30 90, 7306 50 00, 7306 90 11, 7306 90 19, 7306 90 90. The HS codes do not limit the scope of the products under review.According to India's regulations, after 5 years of application, upon the request of the domestic manufacturing sector's representative, the Directorate General of Trade Remedies must conduct a final review to assess the necessity of continuing the anti-subsidy measures or to consider the possibility of a recurrence of subsidization practices or damage to the domestic manufacturing sector if the anti-subsidy duty on stainless steel welded pipes from Vietnam is terminated.The initiation of the sunset review investigation on the anti-subsidy tax on stainless steel welded pipes from Vietnam took place on September 30, 2023, according to the Directorate General of Trade Remedies. The official submission of the questionnaire for investigation to manufacturers, exporters and related parties occurred on November 28, 2023, by the Indian Directorate. Consequently, concerned parties have 7 days from the official date of sending the questionnaire to submit opinions on the security measures of the petition within the required file. Within 15 days from the official date of sending the questionnaire, entities need to provide input on the petition, the scope of the investigated goods, and propose product management code numbers. Furthermore, the respondents are expected to submit their responses to the investigation questionnaire and relevant information within 30 days from the official date the Directorate General of Trade Remedies sent out the questionnaire.The period for conducting the review on the anti-subsidy duty on stainless steel welded pipes from Vietnam spans from April 1, 2022, to March 31, 2023. Regarding the content related to damages, the investigation period will additionally cover the three most recent financial years: 2019-2020, 2020-2021, and 2021-2022.The Bureau of Trade Remedies recommends that relevant exporters thoroughly study all related documents and information regarding the case. Full and comprehensive cooperation with the Indian Directorate General of Trade Remedies is advised. Register as an involved party, respond to the questionnaire within the specified timeframe and format and maintain regular contact with the Bureau of Trade Remedies to receive timely information and support.

After a slight decrease in October 2023, Hoa Phat's consumption of construction steel and high quality steel increased again in November 2023 due to the revival of demand for construction steel and partly from measures to boost the industry1. Hoa Phat's operating situation in NovemberAccording to the business production report for November 2023 from Hoa Phat Corporation, crude steel production output reached 635,000 tons, equivalent to the previous month.Sales output of HRC products, construction steel, high quality steel and billets reached 709,000 tons, up 12% compared to October 2023. For HRC products, consumption in November 2023 recorded 270,000 tons, high quality steel reached 410,000 tons, increasing by 21% compared to October 2023.In addition, in November 2023, Hoa Phat also provided 37,000 tons of galvanized steel sheets and 73,000 tons of steel pipes of all kinds to domestic and foreign markets.Accumulated in the first 11 months of 2023, Hoa Phat produced more than 6 million tons of crude steel, sales volume reached 6.96 million tons. Of which, construction steel and high quality steel reached 3.3. million tons, down 15% compared to November 2022. Export activities of these types of steel contributed 695,000 tons.2. Expectations for global steel recovery in 2024Hoa Phat's steel consumption output in November 2023 recorded growth in the context of the Vietnamese and world steel industry is showing positive signs.According to forecasts of the World Steel Association, global steel demand in 2024 is expected to recover by 1.9% compared to 2023, reaching 1.8 billion tons. In particular, the EU and Indian markets recovered by 5.6% and 7.5%, respectively, compared to the same period. Global steel supply is expected to decrease slightly by 1% due to the impact of China implementing a plan to cut production by 2% in 2024. This also affects global steel prices as it is expected to increase slightly by 3.5% compared to 2023 due to tight supply.China accounts for more than 50% of the world's annual steel production. In the first 9 months of 2023, the country's steel supply increased by 0.9% over the same period thanks to the recovery of blast furnaces in Tangshan. In addition, the Chinese government is also extending production cut measures to support the domestic steel industry's recovery.Furthermore, the Indian steel industry, accounting for 7% of the world steel market share, also recorded a supply growth of over 10% in the context of the country's government increasing investment in infrastructure construction to serve economic development.3. Prediction of Vietnam steel situation in 2024In Vietnam, steel demand is expected to increase strongly again when the real estate market gradually recovers from 2024. In the latest report of MB Securities (MBS), it is forecasted that in 2024, domestic construction steel prices will recover to 15 million VND/ton (up 8% compared to 2023). Coal and ore raw material prices are expected to decrease slightly by 7% and 6% in 2024 due to stable supply and decline in China's demand for crude steel production.For the export market, recovering demand in the EU and US has a positive impact on output and price of exported galvanized steel sheets. Steel export prices are expected to increase by 9% in 2024, helping the gross profit margin of steel export enterprises improve.Above is the latest news about the Vietnamese steel market in general and Hoa Phat Group in particular. For all updated information about the steel industry in Vietnam and the world, readers can find out more details at the MRS Steel website.