Minining & Construction Vietnam is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726

Export of iron and steel soaring sharply

07/06/2022

As the scarcity of iron ore supply pushed prices up and Beijing is passing heavy restrictions to reduce emissions, the recovery in global steel demand have sparked a “steel fever” recently and increased Vietnam’s iron and steel export value in the first four months.

The chart of steel material price during 2019-2021. Source: Vietnam Steel Association

According to the Ministry of Industry and Trade, the iron and steel export value surpassed the $1 billion mark in the first four months of 2021. Exports of iron and steel soared by nearly 88 per cent to $2.7 billion and rose 47 per cent in volume to 3.8 million tonnes. The export of products made from steel also increased by 20.9 per cent to $1.2 billion.

The latest report by the General Department of Vietnam Customs highlighted that in the second half of April 2021, steel exports rose by $173 million, equivalent to 58.1 per cent compared to the first half of the month.

Thereby, manufacturing industrial products in the first four months of 2021 rose significantly on-year, while rolled steel products increased 61.8 per cent, and crude iron and steel rose 17.4 per cent.

The Vietnam Steel Association (VSA) reported that steel production reached more than 10.4 million tonnes in the first four months, up 38.3 per cent on-year. Sales reached 9.4 million tonnes, up 40.3 per cent on-year, and exports were 2.1 million, a rise of 67.8 per cent on-year.

Over the past months, local steel prices have increased sharply by 40-45 per cent over the last quarter of 2020. The steel sector heated up due to the consecutive rises in input material prices, while Vietnam’s steel production mainly depends on import materials like iron ore, scrap steel, graphite electrode. Delays in delivery and the interruption of global logistics have also contributed to the increase in steel prices.

Specifically, the VSA reported that the price of iron ore (Fe 62 per cent) on May 4, 2021 was at $189.4-189.9 per tonne, a $19 over early April, and increased to $210-212 per tonne on May 7, 2021.

Premium hard coking coal exported from Australian ports on May 4, 2021 was at $103.75 per tonne, down $5 over early April, while in China it rose high.

Heavy melting steel (HMS) I/II 80:20 imported through East Asian ports cost $466, a rise of $24 over early April. The price of HSM in the US has increased slightly, while in Europe and Southeast Asia it remained stable.

Hot-rolled coiled steel (HRC) on May 4 was at $925 per tonne at East Asian ports, up $130 over early April.

“Generally, the world market of HRC has been fluctuating, so the local market faces a lot of challenges because enterprises that produce flat steel (galvanised sheet, steel pipe) use HRC as manufacturing material,” VSA reported.

In order to adjust the supply of steel and stabilise prices, reduce speculation and price pressure, in early February 2021, the Ministry of Industry and Trade (MoIT) in collaboration with relevant ministries and agencies submitted Document No.724/BCT-CN to the government.

The MoIT also asked the ministry’s units to check and build some technical barriers and quality standards to improve competitive climate and ensure customers’ rights, and apply some trade remedies for steel products in accordance with trade regulations and international laws.

Source: vir.

Share this post

Bạn Quan Tâm Đến

26/12/2022
Vietnam FDI for 2022 Tops US$25 billion: MoIP
Vietnam’s Ministry of Planning and Investment has released its November 2022 report on foreign...
21/12/2022
Steel producers’ profit to hit bottom soon
VNDirect expects that the gross profit margin of steel companies will soon recover when most of...
15/11/2022
OPEC predicts a boom in oil demand
A new OPEC report predicts that oil demand will remain strong over the next two decades, reaching...
15/11/2022
TKV (Vietnam Coal and Mineral Industries Group): 10 months of 2022 revenue increased by 20%, trying to ‘finish soon’
In 10 months of 2022, Vietnam Coal and Mineral Industries Group (Vinacomin – TKV) is...
27/09/2022
PRESS CONFERENCE & MEDIA TOUR PROGRAMME
Time: 8:30 – 10:00 Date: 04.10.2022 Venue: Seminar Room, I.C.E,...
26/07/2022
Key sectors drive H1 GDP growth
Vietnam’s Q2 GDP rose to highest in a decade with growth in most key economic sectors, but...
16/06/2022
Blackstone Minerals inks MoU with Vietnam’s Son La Province to advance Ta Khoa Project
The company is focused on building an integrated upstream and downstream battery metals processing...
16/06/2022
Rich countries seek coal-to-clean energy deals with Indonesia and Vietnam
Following a finance deal for South Africa to regenerate coal mining areas, western climate...
07/06/2022
Vietnam imports more coal and oil as natural resources depleted
Vietnam is becoming an importer of coal, oil, gas, … with increasing importing amount. In the...
07/06/2022
Export of iron and steel soaring sharply
As the scarcity of iron ore supply pushed prices up and Beijing is passing heavy restrictions to...

Đăng Ký Bản Tin

    captcha
    ĐẶT GIAN HÀNG
    ĐĂNG KÝ NGAY