CB240 Viet Duc steel coil at 14,750 VND/kg; D10 CB300 rebar steel is priced at 15,000 VND/kg.
Steel products imports rebound in May
According to the report, Vietnam imported approximately 1.55 million tons of steel products in May, soaring by 20.6% from the previous month and 33.5% yearly. Imports from January to May increased by 50.1% year-on-year to around 6.92 million tons. Vietnam's steel products imports rebounded in May this year after falling last month. During the same period, the exports increased for the third consecutive month. Steel products export volume was roughly 1.12 million tons, which increased by 0.8% monthly and 1.4% yearly. Exports from January to May hiked by 25.7% yearly to about 5.51 million tons.
Formosa Ha Tinh Steel raises prices for July delivery
Vietnam's Formosa Ha Tinh Steel announced domestic hot-rolled coil prices for July delivery on May 10, indicating a US$20 increase, according to sources. Despite uncertain domestic steel demand in Vietnam, the government's stance is still on conducting anti-dumping investigations on imported materials from certain countries.
This measure aims to prevent the entry of cheap steel into the country, potentially prompting Ha Tinh Steel to raise prices. Additionally, with the Hoa Phat steel plant in Vietnam announcing sold-out hot-rolled coils despite the recent price hike, this may further drive up prices for Ha Tinh Steel.
Formosa Ha Tinh resumes export steel to India
India's steel imports from Vietnam resumed last week after the Bureau of Indian Standards (BIS) awarded certification to Formosa Ha Tinh, Vietnam's leading steel producer, in early June.
A significant amount of steel products has been delayed shipping from Vietnam to India in the past few weeks because the country's steel mills had not yet obtained quality certification from BIS. It is mandatory for exporters to seek quality certification from BIS.
This resurgence in imports from Vietnam has raised concerns in India's domestic steel industry because the industry’s margins will face further pressure.
AD investigation on galvanized steel products from China & South Korea
On June 14, 2024, the Ministry of Industry and Trade of Vietnam announced that it had launched an anti-dumping (AD) investigation on galvanized steel products originating from China and South Korea in response to the application submitted by domestic companies, Hoa Sen Group, Nam Kim Steel Joint Stock Company, Southern Steel Sheet Co. Ltd., Dong A Steel Corporation, and China Steel and Nippon Steel Vietnam Joint Stock Company. The investigation period is from April 1, 2023, to March 31, 2024. The damage investigation period is from April 1, 2018, to March 31, 2024.
The HS code for subject products are 7210.41.11, 7210.41.12, 7210.41.19, 7210.49.11,7210.49.14, 7210.49.15, 7210.49.16, 7210.49.17, 7210.49.18, 7210.49.19,7210.50.00, 7210.61.11, 7210.61.12, 7210.61.19, 7210.69.11, 7210.69.12, 7210.
Positive outlook for Vietnam’s steel industry in 2024
The steel industry in Vietnam is expected to have a positive outlook for 2024, with major companies like Hoa Phat and Hoa Sen projected to experience significant recoveries, while small businesses may face challenges in finding output due to the recovery of steel prices and demand from large contractors.
According to Tien Phong Securities (TPS), the outlook for the steel industry to the end of 2024 is largely positive. The domestic economy is showing signs of improvement, with construction projects resuming, feeding into a more vibrant steel consumption market after the Lunar New Year holiday.
Steel enterprises have seen smooth progress in the first quarter of this year. However, the consumption of construction steel in Vietnam experienced a 20% decline compared to the fourth quarter of the previous year, mainly due to weak demand from the real estate market.
T.Huong
Source: Vitic