AsemconnectVietnam - Steel prices will decrease in July 2024 due to low demand and the continuing downward trend in the market. Currently, businesses are offering prices ranging from 13,840 to 14,590 VND/kg.

According to the Vietnam Steel Association (VSA), in June 2024, Vietnam's finished steel output reached 2.46 million tonnes, up 22.4% over the same period in 2023, while the country's steel product sales in the same month decreased by 7.53% compared to May and increased by 9.3% over the same period last year to 2.36 million tonnes. In the first 6 months of 2024, Vietnam's steel output increased by 10.1% over the same period to 14.43 million tonnes, while the country's steel sales increased by 14.4% over the same period to 14.27 million tonnes.
AD investigation on certain hot-rolled steel products from China & India
On July 26, Vietnam’s Ministry of Industry and Trade declared the decision that it will launch an anti-dumping (AD) investigation on certain hot-rolled steel products originating from India and China. The data collection period to assess dumping behavior is from July 1, 2023, to June 30, 2024; the data collection period to assess damage to the domestic manufacturing industry is 3 years, from July 1, 2021, to June 30, 2024.
The steel products under investigation include HS Codes 7208.25.00, 7208.26.00, 7208.27.19, 7208.27.99, 7208.36.00, 7208.37.00, 7208.38.00, 7208.39.20, 7208.39.40, 7208.39.90, 7208.51.00, 7208.52.00, 7208.53.00, 7208.54.90, 7208.90.90, 7211.14.15, 7211.14.16, 7211.14.19, 7211.19.13, 7211.19.19, 7211.90.12, 7211.90.19, 7225.30.90, 7225.99.90, 7226.91.10, 7226.91.90, 7226.99.19, and 7226.99.99. The investigation will be completed within 12 months from the date of the decision to investigate. In special cases, this period may be extended, but the total investigation period shall not exceed 18 months.
Steel production in 2024 forecasted to grow y-o-y despite challenges of increased imports
Reports indicate that Vietnam's steel production is set to hit 30 million tons in 2024, marking a 7% increase from the previous year. While the rise in imports has led to a reduction in the domestic market share for major local steel companies, exports are experiencing growth. The Vietnam Steel Association highlighted that despite this growth in production, the steel industry faces significant challenges due to increased competition from imported products, especially in the flat products sector.As a result of this import competition, the domestic market share of key Vietnamese steel producers, Hoa Phat Group and Formosa Ha Tinh Steel, has dropped from 45% in 2021 to 30% in 2023.
Steel output & sales increase in H1 y-o-y
According to statistics from Vietnam Steel Association (VSA), Vietnam's production of finished steel was 2.46 million ton in June, increasing by 22.4% compared to the same month a year ago. Meanwhile, the steel products sales totaled approximately 2.36 million tons, a month-on-month decrease of 7.53% but a year-on-year increase of 9.3%. In the first half year, Vietnam's steel output was roughly 14.43 million tons, a year-on-year increase of 10.1%, and the sales grew by 14.4% year on year to 14.27 million tons. During the same period, the country's steel products imports totaled about 1.55 million tons, soaring by 84.72% over the same period of last year. Besides, the finished steel exports amounted to 1.12 million tons, marking a monthly increase of 0.78% but reflecting a 1.37% year-on-year decrease.
Steel imports & exports decline in Jun m-o-m
According to Vietnam's customs, the country's steel imports fell in June after a rebound in May, with exports also experiencing a decline. However, scrap imports saw a significant increase after three consecutive months of decline. Vietnam imported 1.28 million tons of steel in June, a 17% decrease from the previous month. Imports from China and Japan, the two largest suppliers, totaled about 935,000 tons and 137,000 tons, respectively, marking month-on-month decreases of 15.1% and 25.7%. For the first half of the year, total imports reached 8.23 million tons, a 48% increase year-on-year.
Scrap steel imports in June surged by 54.1% month-on-month to nearly 456,000 tons, more than doubling year-on-year. In the first half of the year, scrap imports totaled 2.44 million tons, a 4.3% increase year-on-year. Vietnam's steel exports in June were around 988,000 tons, an 11.6% decrease month-on-month and a 1.8% decrease year-on-year. However, for the first half of the year, exports increased by 20.5% year on year, reaching 6.49 million tons.
Hoa Phat & Cambodia's Chip Mong Group sign MoU to export construction steel to Cambodia
Vietnam's Hoa Phat and Cambodia's Chip Mong Group signed a memorandum of understanding (MoU) on June 28, 2024, aimed at exporting construction steel to Cambodia. The agreement spans from July 1, 2024, to December 31, 2024.
Hoa Phat has exported steel to nearly 40 countries across five continents and is committed to supplying construction steel products to meet Cambodia's market demand. Beyond steel, the agreement is seen as a platform for collaboration where both companies can leverage their strengths. Hoa Phat looks forward to offering its products through Chip Mong's retail network in Cambodia's commercial centers.
T.Huong
Source: Vitic/Yieh