According to the forecasts made by WSA (World Steel Association), global steel demand, which decreased in 2022, will start to recover in 2023. By the 2040s, global steel demand will likely exceed 2 billion tons.
The situation in the Vietnam markets in steel production is as follows:
Iron ore 62%: In the second quarter of 2023, it was approximately $110/t, down 11 percent from the first quarter and down 19 percent from the same period of 2022.
The average iron ore price in the first six months of 2023 was $118/t, down 15 percent compared to the same period of 2022.
Coking coal: The price of hard coking coal exported at the Australian port on 6 July 2023 is trading at approximately $230/ton FOB, equivalent to the transaction price compared to the beginning of June 2023. Average coking coal price in the second quarter of 2023 was $243/t, down 29 percent compared to the first quarter and 45 percent compared to the same period of 2022.
Scrap: The price of scrap steel traded at Dong A port was $ 375/t, down 4 percent compared to the beginning of June 2023. The average scrap steel price traded at Dong A port in the first half of 2023 was $421/t, down 22.6 percent compared to the same period of 2022.
HRC hot rolled coil: CFR Vietnam, which was priced at $571/t on June 7, 2023, was down $35/ton from the initial transaction price in June 2023.
The global hot rolled steel market is fluctuating. The reason for this is thought to be that flat steel producers (cold cold rolled sheet, galvanized steel, steel pipes, etc.) use HRC as raw material for production.
Considering the sales of Vietnamese steel products; Final steel production in June 2023 was recorded as 2,010 million tons, down 9 percent compared to May and 16 percent compared to 2022.
Looking at the first six months of 2023, the final steel production is; Compared to 2022, it decreased by 20 percent and decreased to 13 million tons. Final steel sales also decreased by 17 percent compared to 2022 and were recorded as 12 million tons.
Import status of Vietnam steel products
Looking at the first five months of 2023, imports of all types of finished steel products to Vietnam decreased by 12 percent in volume and 29 percent in value to approximately 4 million tons. Its value exceeded $3.934 billion.
Vietnam's main steel suppliers include China (54.17 percent), Japan (16.01 percent), South Korea (8.87 percent), India (6.74 percent) and Taiwan (6.67 percent).
Export status of Vietnam steel products
Vietnam exported 1,150 million tons of steel in May 2023, showing an increase of 16 percent compared to April and 52 percent compared to 2022. Export value exceeded 931 million dollars, increasing by 14.53 percent compared to the previous month and 15.2 percent compared to the same period of 2022.
Looking at the first five months of 2023, Vietnam exported 4,500 million tons of steel, showing an increase of 10% compared to 2022. Export value reached 3.448 billion dollars with a decrease of 16.21% compared to the same period of 2022.
Vietnam's main export markets include the ASEAN region (34.76 percent), the EU region (24.68 percent), the United States (6.77 percent), India (4.72 percent) and Brazil (3.36 percent).
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