Steel production and consumption both increased slightly as industrial production flourished

The Vietnam Steel Association (VSA) has just released a report on the situation of Vietnam's steel market in November and 11 months of 2021.

Accordingly, finished steel production in November 2021 increased slightly, reaching 2.9 million tons and up 9% over the same period in 2020. Generally in the first 11 months of 2021, production of all kinds of finished steel products reached 30.5. million tons, up 21% over the same period in 2020.

VSA source.

Particularly, steel consumption of all kinds decreased in November 2021, reaching 2.3 million tons, down 13.6% over the previous month and down 8.6% over the same period in 2020. Accumulated in 11 months of 2021, consumption steel consumption of all kinds reached 26.9 million tons, up 18% over the same period in 2020. Of which, exports of VSA members reached 7.1 million tons, up significantly compared to the same period in 2020.

VSA source.

According to VSA's assessment, in the first 11 months of 2021, the production and consumption of steel products of all kinds still increased quite well due to inheriting the good business results of the first months of 2021.

Regarding the situation of steel exports, in October 2021, it will reach 1,219 million tons, down 10.11% from the previous month but up 30.27% over the same period in 2020 in terms of export volume. Export value reached more than 1.232 billion USD, down 12.23% compared to September 2021 but increased more than 1.42 times over the same period in 2020.

Generally, in the first 10 months of 2021, Vietnam's steel exports reached about 11.069 million tons, with a value of more than $9.654 billion to more than 20 countries and regions around the world.

Vietnam's steel export market: Source VSA.

In contrast, in October 2021, steel imports to Vietnam reached approximately 841 thousand tons with a turnover of about 923 million USD, up 3.4% in volume but down 1.7% in value compared to the previous month; compared with the same period last year decreased by 7.33% in volume but increased by 55.72% in value.

In the 10 months of 2021, imports of finished steel products of all kinds to Vietnam are about 10.53 million tons with a value of more than 9.6 billion USD, down 6.03% in volume but up 44.47% in value compared to the previous 10 months. same period in 2020.

Price situation and quantity of steel imports into Vietnam in 2019-2021: Source VSA

Update on the market situation of steel production materials, VSA said that iron ore price on December 6, 2021 traded at 100.15-100.65 USD/ton CFR Tianjin port, China, a slight increase of about 4 USD/ton compared to November 8, 2021.

This price is about 110 USD/ton lower than the highest price recorded in early May 2021 (approximately 210 - 212 USD/ton).

The price of coking coal for export at the Australian port on December 6, 2021 traded at about $291.5/ton FOB, a sharp decrease of $45.75 compared to the beginning of November 2021.

The price of imported steel scrap at Dong A port was at USD 530/ton CFR East Asia on December 1, 2021, unchanged compared to the beginning of November 2021. The price of scrap steel offered for sale in the US and European markets is stable, while East Asia tends to decrease.

China's graphite electrode (GE) price has increased by 3,500-4,000 yuan/ton ($549-627/ton) month-on-month due to higher coke prices. The price of the 600mm UHP type electrode was traded at 24,500 yuan/ton (equivalent to 3,840/ton), while the price of the HP 450mm type electrode was at 20,700 yuan/tonne (equivalent to 3,245/tonne).

Hot rolled coil (HRC) price on December 6, 2021 was at 781 USD/T, CFR Dong A port, down about 34 USD/ton compared to the trading price in early November 2021.

VSA source.

According to VSA's assessment, steel production and consumption still achieved growth because the industrial production situation in October 2021 prospered when the Covid-19 epidemic was gradually controlled, social distancing measures were taken. was eased, production and business activities were gradually restored to a new normal state.

Commenting on 2022, VSA believes that the Covid-19 epidemic situation will be better controlled, creating conditions for steel factories to operate stably, ensuring steel supply for domestic and export markets. It is expected that crude steel production will grow by 8-10% compared to 2021; production and consumption of finished steel products have corresponding growth compared to 2021.

In order to balance supply and demand in 2022, VSA also offers a solution and recommendations such as developing policies to encourage investment, promote and protect domestic steel production with consistency and long-term stability.

Presiding over the development and early promulgation of National Technical Regulations on steel products such as metal-plated corrugated iron and color coating, and at the same time guiding the process, the participation of State agencies, associations and enterprises.

The State supports enterprises in the application of trade remedies to protect domestic production, as well as to respond to trade remedy lawsuits by countries against steel exports of the country. Vietnam to minimize the damage to businesses.

VnEconomy