In the first quarter of 2022, finished steel production and consumption grew by 3.2% and 7.7%, respectively, over the same period. In terms of raw materials, while the price of iron ore, coking coal, hot rolled steel (HRC) decreased, scrap steel increased sharply...
On April 18, the Vietnam Steel Association (VSA) announced a report on the situation of Vietnam’s steel market in March and the first quarter of 2022.
Accordingly, in March 2022, finished steel production reached 3,338 million tons, up 29.16% compared to February 2022 and up 6.8% over the same period in 2021. Steel consumption of all kinds reached 3,123 million tons, up 21.3% over the previous month and 2.4% over the same period.
In the first quarter of 2022 compared to the same period in 2021, finished steel production reached 8,456 million tons, up 3.2%; finished steel consumption reached 8,137 million tons, up 11.9%.
Regarding the export situation, the report shows that in March 2022, Vietnam’s exports of finished steel products reached 956 thousand tons, up 75.41% over the previous month, but down 22.8% over the same period last year. in 2021. Export value reached US$908.63 million, up 71.87% compared to February 2022 and 1.05% over the same period in 2021.
In the first quarter of 2022, Vietnam exported about 2,275 million tons of steel, down 22.15% over the same period last year. Export value reached 2.3 billion USD, up 12.53% over the same period in 2021.
The main export markets of Vietnam in the first quarter of 2022 are the ASEAN region (40.57%), the EU (19.32%), the United States (8.34%), South Korea (6.97 %) and Hong Kong (3.91%).
From the opposite direction, in March 2022, imports of finished steel into Vietnam reached 1.1 million tons with a turnover of 1.14 billion USD, up 23% in volume and 22.36% in value compared to the previous year, same period in 2021.
Generally, in the first quarter of 2022, imports of finished steel products of all kinds to Vietnam were about 3 million tons with a value of more than $3.1 billion, down 18.04% in volume but up 18.84% in value.
As for the market situation of steel production materials, VSA’s report showed that iron ore price on April 8, 2022 traded at 155 USD/ton CFR Tianjin port, China, down about 1.5 USD. /ton compared to the beginning of March 2022. This price is about 55-57 USD/ton lower than the highest price recorded in early May 2021 (~ 210-212 USD/ton).
The price of coking coal for export at the Australian port on April 8, 2022 traded at 359.5 USD/ton FOB, a sharp decrease compared to the beginning of March 2022. Coke prices tend to increase continuously since the third quarter of 2021 and adjust sharply in March 2022.
The price of imported steel scrap at Dong A port was at 624 USD/ton CFR East Asia on April 8, 2022, up 44 USD/ton compared to the beginning of March 2022.
Hot rolled steel (HRC) price on April 8, 2022 was at 878 USD/ton, CFR Dong A port, down about 12 USD/ton compared to the transaction price in early March 2022.
In general, the world HRC steel market fluctuates, making the domestic HRC market difficult because flat steel manufacturers (CRC, galvanized steel, steel pipes…) use HRC as raw materials for production.
According to some experts’ forecasts, in 2022, domestic steel consumption will grow well based on increased disbursement of public investment, focus on infrastructure, and recovery of civil construction activities. when the epidemic is under control.
Specifically, the National Assembly has approved an economic recovery support package worth VND 350,000 billion, of which VND 113,850 billion is allocated for infrastructure development, focusing on key projects such as the North – East Expressway. In the South East, Long Thanh airport, large logistics ports…, leading to an increase in iron and steel consumption demand.
Source: Vneconomy
