AsemconnectVietnam - To promote steel exports to the European Union (EU) market, Vietnam's steel manufacturers need to optimize technology, save energy, and carry out product quality standards of the EU, according to Do Nam Binh, head of the Minerals and Metallurgy Division at the Department of Industry under the Ministry of Industry and Trade (MoIT).

Vietnam has exported steel products to more than 30 markets in the world, with about 25-30% of its steel exports going to the EU market. In 2023, Vietnam exported over 2.5 million tonnes of steel to the EU market, nearly doubling from 2022. Since the Free Trade Agreement between Vietnam and the EU (EVFTA) that took effect in August 2020, Vietnam has continuously expanded its market share in the EU, making it one of the main export markets of Vietnamese steel. However, from mid-2023, especially this year, Vietnam's steel export to the EU market has faced many challenges.
The price of Vietnam America Steel's CB240 rolled steel D10 and CB300 ribbed steel are at $0.59 per kg. Meanwhile, Hoa Phat sees CB240 rolled steel down to $0.58/kg and D10 CB300 ribbed steel down to $0.60/kg.
Steel firms drop prices for the third time this year
Construction steel manufacturers are once again reducing prices, with an adjustment of around $4.17/tonne at the beginning of April.
The price of rolled steel has decreased by a total of $20.83 per tonne since the start of the year.
The construction sector overall is facing difficulties due to limited financial capabilities and a restricted market, leading to a high withdrawal rate of businesses in the first three months of 2024.
Data from the General Statistics Office shows that in the first quarter, 3,208 new construction businesses were established; 2,918 construction businesses resumed operations, and an average of about 2,300 new businesses entered the market each month.
However, according to state-run VNSteel, during the same period, 7,064 construction businesses suspended business temporarily; 369 businesses completed dissolution procedures, and an average of nearly 2,478 businesses withdrew from the market each month.
Vietnam’s steel product imports hike in Jan-Feb y-o-y
According to data from Vietnam’s customs, in the first two months of 2024, Vietnam imported steel products with about 2.6 million tons, soaring by almost two times compared to the same period a year ago. Among them, the imports from China reached about 1.8 million tons, skyrocketing by around three times year on year. Vietnam’s steel enterprises indicated high imports, especially from China, threatened local producers.
According to statistics from the Vietnam Steel Association (VSA), in 2023, the steel production and consumption of its members were 28 million tons and 26.3 million tons, respectively. Therefore, local production capacity can meet domestic demand.
Vietnam’s scrap imports soar in Feb m-o-m
According to data from Vietnam’s Ministry of Finance, in February, Vietnam’s scrap imports were about 463,000 tons, a 30.1% month-on-month hike and a year-on-year decrease of 4%, which was the first year-on-year decrease in the past five months. Meanwhile, the import value totaled about US$176 million, growing by 25.1% from the previous year.
In the first two months of this year, the imports were about 819,000 tons, increasing by 20% year on year, and the imported value amounted to US$317 million, a year-on-year increase of 20.9%.
Vietnam’s steel export output increases in Jan-Feb y-o-y
According to statistics from Vietnam’s customs, in the first two months of 2024, Vietnam’s steel export output reached about US$1.5 billion, increasing by 19% in volume and by 13% in value compared to the same period in 2023.
In specific, in January, Vietnam’s export destinations included Italy (hiking by 114% year on year to about 203,000 tons), the US (soaring by 419% year on year to about 139,000 tons), and Malaysia (soaring by 625% year on year to about 120,000 tons), respectively.
T.Huong
Source: Vitic/Yieh/VNA