(HSV VIETNAM GROUP) – In the world, the demand for iron and steel next year is forecast to be large with large construction projects in many countries.
Specifically, world steel demand has increased significantly since the first quarter of 2021 when a series of countries have approved and accelerated the construction progress 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.
Accordingly, the United States has just approved and deployed a 1,200 billion USD investment package for infrastructure, marking the largest investment in US infrastructure since the Federal Aid Highway Act of 1956. In this package, it is worth noting that projects that need to mobilize steel include 110 billion USD for roads, key transportation projects, 66 billion USD for railways, 39 billion USD for public transportation and 7.5 billion USD for electric vehicles. Experts in this country say that every $100 billion in new investment in infrastructure will increase domestic steel demand by 5 million tons.
Referring to the Chinese market, experts said that with increased consumption demand and a temporary shortage of steel supply in China, Vietnam's steel exports to the billion-people market will grow well. Increased market demand in this country and competitive prices are advantages for domestic enterprises' steel exports. Experts in this country further analyzed that China gradually reduced its export output, causing a shortage for partners that regularly import steel from this country. That will open up great opportunities for surrounding countries to penetrate this market, especially Vietnam.
In a similar situation in the European market, self-defense measures such as applying quotas make it difficult for countries that are exporting heavily to Europe to increase output in a short time due to sudden increases in demand. Experts say this is an opportunity for Vietnamese steel enterprises to export to this market. In terms of price, the current steel production price of Vietnamese enterprises is quite competitive because manufacturers have autonomy in the supply of hot rolled coil steel (HRC).
Finally, the Indian Government also announced the launch of a $1,350 billion infrastructure investment plan in early August next year. This investment package will focus on promoting industrial production and economic growth with a focus on expanding transportation infrastructure and using cleaner fuels. Therefore, the market is also an opportunity for Vietnam to export.
Ha Diem HSV