What are the Latest Happenings in Vietnam’s Steel Sector?
Mining News Pro - VSA Predicts stable growth for Vietnam’s steel consumption

According to Mining News Pro -VSA Predicts stable growth for Vietnam’s steel consumption

VSA (Vietnam Steel Association) has predicted that without any major changes, country’s steel consumption in the large market is likely to remain stable until the end of 2018.

VSA’s Vice Chairman, Nguyen Van Sua mentioned that few factors that has negatively affected global steel consumption especially in the second half of this year are U.S. tariffs on Turkey, winter production cuts in China and U.S.-China trade tension. However, demand steel demand in Europe is forecasted to increase by 2.2% this year, driven by surging auto and construction demand.

In the case of Vietnam’s domestic market, steel production and sales are enjoying fast growth and this trend is likely to maintain through December.

Vietnam’s steel trade dynamics

VSA’s data shows that more than 20 MnT of steel products were manufactured between January and October, up 17.7% year on year. Construction steel is one of the products enjoying the best growth recently, with more than 8.3 MnT produced in the 10 months, up 10% and almost 8.3 MnT were sold, up 14%.

Hoa Phat topped the construction steel market share with 23% followed by the Vietnam Steel Corporation with 18% and Pomina 10%, and POSCO SS 10%.

More than 18 MnT of steel were sold with some 3.9 MnT exported, registering an increase of 28% and 32% respectively. Main export markets of Vietnam’s steel were Cambodia, U.S., Indonesia, Malaysia, and Thailand.

In first ten months of 2018 (Jan to Oct), the country imported nearly 11.4 MnT of steel, down by 11% y-o-y basis with highest imports coming from China followed by Japan and South Korea.

Malaysia imposes temporary ADD on galvanized iron from Vietnam

This year Vietnam steel sector is facing the increase in number of anti-dumping lawsuits from various steel importing countries as it is alleged that steel from Vietnam is being dumped into countries at much lower prices or there are cases of tax evasion.

Only recently, Malaysia’s Ministry of International Trade and Industry (MITI) has imposed temporary anti-dumping duties ranging from 3.33% to 16.13% on galvanised iron imported from Vietnam and China. The duties are applied for no more than 120 days and have been effective since 8 Nov’18.

Vietnam’s Formosa may come up with the third furnace in the country

Amid strong demand from Southeast Asian market, Vietnam’s Formosa Ha Tinh Steel Corp will study the feasibility of building a third furnace to expand steel production. The feasibility plan would be conducted by next year at the earliest and its execution depends on the approval of the company’s shareholders and the Vietnamese government’s decision to support the plan.

While the company’s first furnace became operational in May 2017, its second furnace started operations in May this year. The first furnace rolled out about 1.6 MnT of molten iron last year, while the second furnace, which is operating at 95%, is expected to produce 5 MnT this year, generating USD 2.5 billion in sales.

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