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The Vietnam Steel Association (VSA) has just released a market report in November. Accordingly, in November, the construction steel production situation achieved good results compared to the previous month and the same period of 2020, however sales volume decrease in the month.
Consumption of construction steel in November decreased by 31% over the same period last year
Specifically, the production of construction steel produced in November 2021 reached 1,087,435 tons, up 2.71% compared to October 2021 and up 5.6% over the same period in 2020, sales reached 872,846 tons, down 26.11% over the previous month and down 31.2% over the same period in 2020.
Generally for the first 11 months of 2021, construction steel production reached 11,352,150 tons, up 3.9% over the same period in 2020. Sales reached 10,883,152 tons, down 2.6% over the same period in 2020. In which, exports reached 2,027,862 tons, up 55% over the same period in 2020.
Inventory as of November 30, 2021 is 764,063 tons. This is the average inventory level for businesses to consume in the following months.
According to the explanation of VSA, the Covid-19 epidemic lasted for a long time, so many works and civil works were temporarily postponed, especially in the southern region, despite being restarted again, but there are still many difficulties, leading to sales volume of construction steel decreased by 2.6%, of which domestic sales decreased by 10% over the same period in 2020. Specifically, in the first 11 months of 2021, sales growth of construction steel in the North decreased by 11 .4%, the South decreased by 9.4%, exports and the Central region increased by 32% and 17.5%, respectively.
Construction steel exports in 11 months of 2021 increased by 1.5 times compared to the same period in 2020. Factors favorable for export such as environmental policy, adjustment of export tax refund of the Chinese Government and price fluctuations Ore, Coke coal and scrap have recently affected the Southeast Asian steel market, including Vietnam.
Domestic construction steel prices adjusted slightly due to low domestic demand
In November 2021, the global steel material market tends to decrease. Especially, the purchase price of China's futures delivery in January and February 2022 decreased, thus affecting the current export price of Vietnam.
The selling price of domestic construction steel was adjusted down from 200-300 VND/kg in early December 2021, at an average level of about 15,900-16,000 VND/kg depending on the type of product and each enterprise.
Input material prices fell sharply, iron ore fell 50% from the peak, coking coal prices fell. Source: VSA
According to the Steel Association, the market outlook for the fourth quarter is slowing down due to low domestic demand. Considering the long steel consumption market in Vietnam, the demand has positive signals for civil works and infrastructure, especially large public investment. The recent downward price trend due to the decrease in domestic and scrap import prices contributed to making traders hesitate to buy goods at the end of the year.
Hot rolled coil (HRC): Sales volume in 11 months increased by 75% over the same period last year
In November 2021, hot rolled coil production reached 623,536 tons, up 0.76% compared to October 2021 and 21.1% over the same period in 2020; Sales reached 586,081 tons, up 5.07% over the previous month and up 11.6% over the same period in 2020.
In the first 11 months of 2021, hot rolled coil production reached 6,559,037 tons, up 68.2% over the same period; Sales of hot rolled coil reached 6,524,514 tons, up 75.5% over the same period, of which exports reached 1,204,400 tons, up 84% over the same period in 2020.
In general, the world hot rolled steel (HRC) market fluctuates, making the domestic HRC market difficult because flat steel producers (CRC, galvanized steel, steel pipes, etc.) use HRC as raw materials for production. export. 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.
Cold rolled steel coil - CRC still growing well
In November 2021, domestic cold-rolled steel production of VSA members reached 392,747 tons, down 7.44% compared to October 2021, and down 5.2% over the same period in 2020; Sales reached 174,667 tons, up 2.05% over the previous month but down 16.7% over the same period in 2020; In which, exports reached 50,109 tons, down 21.78% over the previous month but up 28.6% over the same period last year.
Generally, in the first 11 months of the year, production and sales of cold rolled steel still achieved positive results, specifically, cold rolled coil production reached 4,794,063 tons, up 20.3% over the same period in 2020; Sales of cold rolled coils reached 2,124,624 tons, up 8.7% over the same period in 2020, of which exports reached 591,443 tons, up 42.5% over the same period in 2020.
Galvanized steel and non-ferrous metals: exports doubled in the same period last year
In the first 11 months of 2021, the production of KL & SPM coated steel sheets of VSA members reached 5,431,984 tons, up 37.1% over the same period in 2020; sales reached 4,892,699 tons, up 37.9% over the same period in 2020 in which exports reached 3,101,216 tons, up 2.1 times over the same period last year.
Galvanized sheet & SPM is one of the industries that maintains a fairly good export volume, leading to a high growth in total sales compared to the same period in 2020.
Steel pipe: sales volume decreased by 30% in the same period last year
Steel pipe production of VSA members reached 219,070 tons, down 9.86% over the previous month and down 16.6% over the same period in 2020;
Sales reached 199,345 tons, down 24.5% month on month, and down 31.7% year on year. In which, exports of welded steel pipes reached 13,028 tons, down 30.29% compared to October 2021 and down 43.2% over the same period in 2020.
In the first 1 month of 2021, steel pipe production reached 2,445,097 tons, up 2.5% over the same period last year. Sales reached 2,504,140 tons, up 1.7% over the same period in 2020, of which export volume
According to the Steel Association, by 2022, with the active participation of the Government and sectors and levels, the Covid-19 epidemic situation will be better controlled, creating conditions for steel factories to operate stably. , ensuring the supply of steel for domestic and export markets. It is expected that in 2022, the situation of steel production and sales may slow down when there is a holiday for the Lunar New Year, the possibility of the Covid-19 epidemic developing difficult. 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 addition, VSA also mentioned a number of solutions to ensure the balance of supply and demand in 2022 such as:
Develop policies to encourage investment, promote and protect domestic steel production consistent, long-term stability.
Presiding over the development and early promulgation of the National Technical Regulation on steel products such as metal-coated corrugated iron and color-coated steel; At the same time guide the process, the participation of the parties (State agencies, associations and businesses).
State agencies support enterprises in applying trade remedies to protect domestic production, as well as respond to trade remedy lawsuits by countries against exported steel products. imports of Vietnam to minimize the damage to businesses.
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