Exports of many iron and steel products increased by the same amount in November, especially impressive to the US market

Floral: Kieu Linh.

As reported by VnEconomy, in the first 11 months of 2021, Vietnam recorded an official steel export value of 10 billion USD, the first time steel products reached the export club of over 10 billion USD, and at the same time, a commodity with high export value. the growth rate over the same period was the highest, reaching 129.8%. While the remaining items average 10-20%.

IMPRESSED WITH THE SITUATION OF EXPORTS TO THE US
In more detail, the latest data from the Vietnam Steel Association shows that, in November 2021, many export steel products grew strongly compared to the same period last year.

Specifically, leading the export growth is galvanized steel sheet with production volume of 565.3 thousand tons in November, sales of 485 thousand tons, but exports reaching 326.7 thousand tons, an increase of more than 2 times compared to that of galvanized steel sheet. with the same period last year. The second place in terms of export speed is construction steel, production in November 2021 reached 1.08 million tons, sales reached 872.8 thousand tons, of which 205 thousand tons were exported, export growth reached 155. .8% over the same period last year.

In third place is cold rolled steel, with production of 392 thousand tons, sales of 174,000 tons, but exports increased by 93.2% compared to last year to reach 45 thousand tons. Followed by HRC products with export growth of 81.2%; steel pipe exports increased by 56.8%.

Accumulated in the first 11 months of 2021, exports of galvanized steel reached 3 million tons, up 2.1 times over the same period in 2020. Construction steel exports reached 2 million tons, up 1.6 times; HRC exports increased 1.84 times; Cold rolled steel exports increased by 1.42 times, steel pipe exports increased by 83%.

In terms of export markets, the top 10 steel exporting countries of Vietnam in October was led by China with the proportion accounting for 27.28% in volume and 18.21% in price. Next is the EU with 11.6% in volume and 16.36% in price. The third is ASEAN with the proportion of 15.6% in volume and 14.99% in price.

The United States ranked fourth with a share of 9.22% in volume and 13.13% in price. However, there is a particularly impressive growth in exports to the US market. Previously, exports to the US market accounted for only 6% in September. At the end of 2020, exports to the US market accounted for only 1.9%.

Accumulated in the first 10 months of 2021, the top 5 steel export markets of Vietnam in 2020 are Asean (42.6%), China (36.53%), EU (2.88%), Taiwan (2.86). %) and the US (1.87%), there will be a change in 2021 as ASEAN is still a traditional market with the proportion of 28.86%, China 22%, EU 12%, US 7% and Taiwan 4 %.

MANY NEW OPPORTUNITIES FOR BUSINESS STILL FROM US MARKET
Although China has always maintained the number one position, the number two steel export market of Vietnam is only behind ASEAN, however, steel demand for China's construction industry is forecasted to decline in the period of 2022 - 2025, a time when infrastructure projects gradually decrease and risks increase in the country's real estate industry.

According to sources, blast furnace utilization rates in the Hebei cities of Tangshan and Handan, two major steel production hubs in China, were below 65% and 70% respectively, as of mid-May. 11. Meanwhile, concerns about oversupply have emerged amid expectations of a decline in end-user demand in Q1 2022.

Market sources said that while property construction activity is likely to deteriorate in Q1 2022 due to poor home sales and land purchases in 2021, on the contrary, steel production could pick up .

Downstream, China's semi-finished steel imports in October reached 1.362 million tons, down 6.7% month-on-month, after recording a 30% month-on-month increase in September and an increase in July. 4% in August, according to Chinese customs data released on November 22, October imports fell 16% year-on-year.

China's nationwide steel production cuts in September boosted domestic steel prices, which stimulated overseas billet orders for November-December deliveries. may lead to a rebound in imports in November, December due to good orders.

However, as the end of 2021 approaches, buyers have shifted focus to contract discussions while several sources in China say neither traders nor end users are interested in stockpiling. , as the steel market may continue to trend downward in the context of oversupply in Q1/2022.

This implies that exporting steel to the Chinese market is forecasted to be difficult in the coming time for Vietnamese exporters. In fact, steel exports to China reached 2,445 million tons, equivalent to US$1.537 billion, although up 27.13% in value, it decreased by 16.39% in volume over the same period in 2020.

In contrast, the bright spot gradually appeared with exporters in the US market. Recently, on November 15, the US President signed a $1.2 trillion investment package for infrastructure, marking the largest investment in US infrastructure since the Roads Act. Federal Aid Highway in 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.

VnEconomy