Vietnam's steel exports to Malaysia experienced a strong increase

In February 2024, the average export steel price also rose by 0.6% to $713 USD/ton.

While ASEAN maintained its position as Vietnam's largest steel export market with a 32% share, the EU and the US followed with shares of 28% and 9%, respectively. Export to Italy in January 2024 saw a 114% increase to 203,000 tons compared to the same period last year, while exports to the US surged by 419% to reach 139,000 tons.

Exports to the Malaysian market showed a significant increase, rising by 625% to reach 120,000 tons.

The main reason behind Malaysia's increase in importing iron and steel from Vietnam is the growing demand for steel in domestic construction and infrastructure projects. According to the Southeast Asia Iron and Steel Institute (SEAISI), construction activities in the region are stabilizing and growing, which will increase steel consumption in ASEAN countries.

Trade volume between Vietnam and Malaysia is also increasing. The bilateral trade turnover, which reached 14.8 billion US dollars in 2022, is aimed to be increased to 18 billion US dollars by 2025. Vietnam and Malaysia are also members of many new generation trade agreements, which may lead to positive developments in steel exports in the future.

With global steel demand expected to increase by 2% to 1.8 billion tons in 2024, Vietnam's steel production is projected to grow by around 10% in the same year.