AsemconnectVietnam - Vietnam's steel industry experienced a difficult year in 2023. The challenges faced by Vietnam's steel market this year include rising input costs, weak domestic demand, price competition for imported resources, and pressure from widening differences in loan interest rates and exchange rates.

These factors have caused steel mills to reduce production and steel companies to suffer losses. Overall, in addition to stimulating investment demand, promoting public investment and real estate projects is also necessary. In the short term, Vietnam's economy still has great development potential. Demand for automotive, shipbuilding, manufacturing, and electrical equipment is growing. Vietnam's crude steel production may increase to 21.5 million tons in 2023 and 51 million tons in 2050.
The determination of the Government, ministries, sectors and localities to promote disbursement of public investment, and efforts taken to address difficulties and speed up the development of the real estate market are positive signs for the steel industry to regain growth momentum in the remaining months of 2023 and early 2024, according to insiders.
Since March, the steel price has been adjusted down 19 times, with the current price fluctuating around 13.7 million VND (563.2 USD) per tonne, the lowest in the past 3 years.
The decreases were attributed to gloomy real estate market, slow public investment disbursement, and fierce competition from China.
According to the steel industry's specialist Nguyen Van Sua, a slump in the realty market since the end of 2022 has driven steel demand down, while steel products imported from China at cheaper prices have created pressure on domestic steel prices.
In a bid to stabilise steel prices, it is necessary to accelerate the implementation of real estate and public investment projects, Sua said, adding that when the property market becomes more vibrant, the steel market will heat up.
According to the Vietnam Steel Association (VSA), steel manufacturing output in September totalled nearly 2.34 million tonnes, up 2.41% month-on-month and down 4.2% year-on-year. Steel consumption was nearly 2.2 million tonnes, increasing 4.7% month-on-month, and 9.4% year-on-year.
Vietnam launches second AD review on China’s H-shaped steel products
On December 5, 2023, the Ministry of Industry and Trade (MOIT) of Vietnam issued Decision No. 3133/QD-BCT of the second review of the anti-dumping (AD) measures on H-shaped steel products originating in China, following the application filed by interested parties. The period of the review is from October 1, 2022, to September 30, 2023.
The products involved in this case are classified under HS codes 7216.33.11, 7216.33.19, 7216.33.90, 7228.70.10, and 7228.70.90.
The final determination of the first sunset review was made in August 2022, continuing to impose an AD duty with a rate ranging from 22.09% to 33.51%, valid from September 6, 2022, for a period of five years.
Formosa Ha Tinh Steel’s domestic orders fully booked
Vietnam's Formosa Ha Tinh Steel Corporation (FHS) announced to increase its hot-rolled coil price by US$35/ton for January to February 2024. Meanwhile, many main Chinese steel mills also hiked the prices, plus the steel prices in Europe and the US were also high.
Regarding domestic orders, because of the high prices in Europe and the US and the obvious demand for inventory replenishment, FHS's domestic orders were fully booked. In terms of the export market, FHS's export volume was fixed, so it was expected to be fully used soon.
Vietnam’s Nam Kim Steel plans to enter higher-end galvanized steel field
Vietnam’s steelmaker Nam Kim Steel planned to expand into the higher-end galvanized steel field by starting a new project at its Nam Kim Phu My plant.
With an expected yearly capacity of 1.2 million, the plant will start construction in 2024 and will be built in three phases until the end of 2026, with a total investment of VND 4.5 trillion.
The galvanized steel products manufactured at the new plant will be applied in household electrical appliances, with higher production techniques compared to its current galvanized steel products primarily used in the construction industry.
T.Huong
Source: Vitic/Yieh