Construction steel exports nearly doubled in March

In particular, steel exports reached nearly 313 thousand tons, a sharp increase of 76% over the same period in 2021. Generally in the first quarter, steel exports reached more than 700 thousand tons, up 55% over the same period in 2021.

Sales reached more than 1.44 million tons, up 22% from the previous month and up 2.9% over the same period in 2021. In particular, steel exports in March reached nearly 313 thousand tons, a sharp increase of 76% compared to the same period in 2021. in the same period in 2021. Generally in the first quarter, steel exports reached more than 700 thousand tons, up 55% over the same period in 2021.

At the regular press conference of the Ministry of Industry and Trade held in early April, Deputy Minister Do Thang Hai said that accelerating the disbursement of public investment capital will also have a positive impact on recovery and growth in a number of industries such as: : steel, building materials, mechanics.

VSA believes that the prospect of Vietnam's steel market in 2022 will be better when the Government issues instructions to stabilize and develop production and business activities to flexibly adapt to the COVID-19 pandemic throughout.

Three focuses to maintain growth momentum and exploit new growth drivers identified by the Government in 2022, including restoring and promoting production and business; boosting exports and speeding up disbursement of public investment capital, mobilizing all resources for infrastructure development.

In the recently released steel stock outlook report, BSC Securities believes that in 2022, domestic steel consumption will grow well based on increasing disbursement of public investment, focusing on infrastructure. , and civil construction activity recovers when the epidemic is under control.

Specifically, the National Assembly has approved an economic recovery support package worth VND 350,000 billion, of which VND 113,850 billion is allocated for infrastructure development, focusing on key projects such as the North - East Expressway. In the South East, Long Thanh airport, large logistics ports..., leading to an increase in iron and steel consumption demand.

Construction activity in 2021 was delayed for the first 9 months of the year to support disease control. In 2022, the supply of apartments will double, and the supply of townhouses will increase by 20%-30% compared to 2021 (according to CBRE Vietnam's forecast) are the factors promoting domestic steel consumption.

For export activities, the escalating conflict between Russia and Ukraine is considered favorable for the steel industry.

Accordingly, the conflict between Ukraine and Russia can disrupt the world's steel supply, leading to a supply shortage and increasing steel prices.

Russia is a major steel exporter in the world, especially in the European market (accounting for 15% of the export market share to the EU, along with two related countries, Ukraine and Belarus, the total steel exports of these three countries to the European Union). The EU accounted for 38%.

In the EU, Russia and Ukraine are the 2nd and 4th largest steel exporters to the region, respectively, in the first 11 months of 2021 with about 21% of total output, according to Eurofer.

Therefore, VBCS believes that when the world starts to implement sanctions against Russia, it will lead to a sharp supply shortage while steel demand is still recovering quickly in 2022 after the COVID-19 pandemic.

Besides, right after the conflict showed signs of escalating from February 24, some leading steel producers in Ukraine (including Metinvest and ArcelorMittal) planned to cut production output to the maximum level. minimized due to delays in rail and port traffic. While Russian exports are in danger of being embargoed by many countries.

VNDIRECT Securities Joint Stock Company also believes that Vietnam's leading steel exporters have the opportunity to increase output in the near future.

Vietnambiz