Exceeding 10 billion USD, export of iron and steel made a breakthrough

Iron and steel exports flourished

In November 2021, Hoa Phat Group reached 765,000 tons of steel of all kinds, equivalent to the same period last year. Finished construction steel recorded more than 271,000 tons, of which the export alone was more than 100,000 tons, 2.3 times higher than the same period last year.

In the past month, export volume of construction steel and galvanized steel of all kinds increased. Construction steel reached more than 100,000 tons, 2.3 times higher than last year. Meanwhile, Hoa Phat steel sheet exported up to 55,000 tons/month for the first time, mainly from the increased demand for galvanized steel sheets in the US and European markets.

In 11 months, Hoa Phat Group achieved total sales of steel of all kinds reaching 8 million tons, up 33% over the same period. Construction steel was 3.5 million tons, up 15%, of which the export of finished construction steel alone reached 914,000 tons, up 90%. The output of hot rolled coil is more than 2.3 million tons.

Hoa Phat is one of the enterprises that have made good use of the market to increase iron and steel exports over the past time. According to the Vietnam Steel Association (VSA), in the first 11 months of 2021, Vietnam recorded the official export value of steel reaching 10 billion USD, the first time steel products reached the export club of over 10 billion USD. was the commodity with the highest growth rate over the same period, reaching 129.8%. While the remaining items average 10-20%.

According to VSA, the strong increase in market demand helps domestic iron and steel exports to face many advantages. Major domestic manufacturers such as Hoa Phat, Ton Hoa Sen or Nam Kim all achieved impressive export figures.

Our country's iron and steel products are mainly exported to ASEAN, China, EU, and US markets. In major markets, the export volume in Asia tends to decrease, but in the EU and US markets, the growth is outstanding.

Opportunities from the market

Regarding the prospect of steel export in the last month of the year, VSA forecasts that, with increased consumption demand, especially a temporary shortage of steel supply in China, steel exports will grow well.

Increased market demand and competitive prices, according to VietcomBank Securities Company (VCBS), are advantages for domestic enterprises' steel exports. According to VCBS's steel industry outlook report, China's export volume gradually decreased, causing shortages for partners that regularly import steel from this country. This opens up opportunities for surrounding countries to penetrate this market.

As for the European market, safeguard measures such as the application of quotas make it difficult for countries that are large exporters to Europe in a short time to increase output and demand spikes. This is an opportunity for Vietnamese steel enterprises to export to this market. In terms of price, currently the production steel price of Vietnamese enterprises is quite competitive because manufacturers are self-sufficient in the supply of hot rolled coil (HRC).

For the US, recently, on November 15, an investment package of $ 1,200 billion for infrastructure was signed by the US President, marking the largest investment in US infrastructure since the US President. Federal Aid Highway Act of 1956.

In which, projects with demand for steel mobilization include USD 110 billion for roads and key transport projects, USD 66 billion for railways, USD 39 billion for public transport and 7.5 billion USD for public transport. USD for electric cars.

The American Iron and Steel Institute estimates that every $100 billion of new investment in infrastructure will increase domestic steel demand by 5 million tons.

World steel demand has increased significantly since the first quarter of 2021 when a series of countries approved and accelerated the construction of infrastructure projects. This trend will continue at least until the end of the first half of 2022, thereby stimulating Vietnamese steel manufacturers to boost exports, especially to the US market.

On the other hand, the Government of India has also announced the launch of an infrastructure investment plan worth 1,350 billion USD in early August. This investment package will focus on promoting industrial production and economic growth with The focus is on expanding transport infrastructure and using cleaner fuels. This market is also an opportunity for Vietnam to export.

NDH