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World steel prices fell again
Steel price on November 26, delivery in May 2022 on the Shanghai Exchange decreased by 77 yuan to 4,174 yuan/ton at the time of the survey at 8:30 am (Vietnam time).

China's manufacturing index according to S&P Global Platts - a separate measure of steel consumption, reached 102 points in October, down 13 points from September and down 6 points from the same period in 2020.

The index is based on data from the National Bureau of Statistics of China for 17 steel-related manufacturing commodities, which are classified into seven sectors and weighted as a share of steel consumption. The monthly production average for 2018, which is 100, is used as a baseline.

In recent weeks, construction-related manufacturing items have been hit hard by the slowdown in China's real estate sector.

Meanwhile, the outlook for the manufacturing sector of consumer-related goods is expected to receive more supportive policies in 2022.

In October, the production of technical machinery, home appliances and vehicles showed signs of slowing down. This is the main factor leading to the decline of the production index mentioned above.

As noted, the decline in China's manufactured steel demand has outstripped the rate of steel output decline since mid-October. As a result, domestic hot-rolled coil (HRC) sales margin has declined. down 64% from the beginning of October to $74/ton at the end of the month.

Iron ore prices rose for a fifth straight session, with the Dalian contract hitting a three-week high while spot prices rose above $100 a tonne, as sentiment improved in China's property sector.

The January 2022 iron ore contract on the Dalian Commodity Exchange closed up 1.8 percent at 611.50 yuan ($95.74) a ton, after touching 629 yuan a tonne in the same session. , the highest since November 2.

Spot iron ore prices with 62% Fe content in China rose to $100.5 per tonne on November 24, also the strongest since November 2, according to data from consulting firm SteelHome.

On the Singapore Exchange, December iron ore contract increased 1.4% to 104.5 USD/ton.

November steel sales forecast decreases
Domestic consumption increased by 52% year-on-year to 928,700 tons in October, significantly higher than 636,000 tons in September. However, VDSC believes that domestic sales may see a correction. adjusted back to normal levels in November.

Total steel consumption in 10 months has grown strongly, mainly thanks to high export volume in both galvanized steel and construction steel.

Specifically, the steel industry (including construction steel, galvanized steel and steel pipes) produced 17.4 million tons of steel, consumed 16.7 million tons, of which exports reached 4.8 million tons, up 11 percent in turn. .4%, 9.7% and 75.4% over the same period last year.

Notably, exports of construction steel and galvanized steel increased by 55% and 110%, respectively.

Meanwhile, due to the slowdown in the domestic construction industry, domestic construction steel consumption decreased by 6.1% over the same period last year. Domestic consumption of galvanized steel also decreased by 11.5% YoY.

Steel consumption in October increased sharply compared to the same period last year as domestic consumption recovered in main steel segments after easing strict social distancing measures, especially in the South.

In the construction steel segment, consumption has recovered as both domestic and export volumes have high growth. Sales volume reached about 1.2 million tons, up about 60% over the same period last year.

Exports continued to grow, reaching 252,600 tonnes in October. In the domestic market, retailers struggled to stock up on inventories after disrupting inter-regional shipping in previous months. Besides, the increase in steel price boosted the psychology of retailers to hoard goods.

As a result, domestic consumption increased by 52% year-on-year to 928,700 tons in October, significantly higher than 636,000 tons in September. However, VDSC believes that domestic sales can There will be a correction back to normal levels in November.

However, the Vietnam Steel Association (VSA) said that by the end of the third quarter, the sales of construction steel in the fourth quarter is expected to be more promising. Considering the long steel consumption market in Vietnam, the demand is really big for civil works and infrastructure, especially public investment is huge.

Many countries in the ASEAN bloc sued Vietnamese steel
At the seminar "Improving trade defense capacity towards a sustainable import-export balance" held in Hanoi on November 25, Mr. Nghiem Xuan Da, Chairman of the Vietnam Steel Association said, Recently, trade remedy lawsuits have not only occurred in major markets such as the US, Canada, Australia, and Europe... but also increasingly in regional countries such as Thailand, Indonesia, and Malaysia. for Vietnam's export steel. This signals the trend in the coming time, exports from Vietnam can be sued for trade remedies in any country.

While ASEAN accounts for one third of Vietnam's total steel exports. In the last 2 years, the proportion of countries suing Vietnam accounted for more than half, including Thailand, Malaysia, Indonesia...

The Vietnam Steel Association has suggested that the Southeast Asian Steel Association and the steel associations of other countries in the region need to resolve disputes and trade remedies within the bloc in the direction of prioritizing dialogue and conciliation solutions. .

Request the Ministry of Industry and Trade to propose the Government to put cooperation and trade disputes on the agenda in ASEAN meetings.

VOH/SATTHEP