Hanoi Iron and Steel (HSV) – In the first 7 months of 2022, Vietnam's economic situation continues to recover in many fields. The index of industrial production (IIP) in July 2022 is estimated to increase by 1.6% over the previous month and by 11.2% over the same period last year, of which the processing and manufacturing industry increased by 12.8%. Overall, for the first 7 months of 2022, IIP is estimated to increase by 8.8% compared to the same period last year (the same period in 2021 increased by 7.6%). Of which, the processing and manufacturing industry increased by 9.7% (same period in 2021 increased by 9.7%).
Market situation of steel production raw materials:
62% Fe iron ore: The price of iron ore (62% Fe) on August 9, 2022 traded at 108.55-109.05 USD/Ton CFR Tianjin port, China, down about 4.2 USD/ton compared to the beginning of July 2022. This price is down about 102-104 USD/ton compared to the highest price recorded in early May 2021 (~ 210 - 212 USD/ton).
Coking coal: The price of Hard coking coal exported at Australian ports on August 9, 2022 was trading at about 183 USD/ton FOB, down sharply from ~520 USD in April 2022.
Scrap steel: In July 2022: Domestic scrap steel price decreased sharply from 1,000 VND/Kg to 1,400 VND/Kg, keeping around 8,500-9,000 VND/Kg. Imported scrap price decreased by 130 USD/ton to maintain 370 USD/ton CFR at the end of July - early August 2022
Graphite electrodes: Graphite electrode (GE) prices in China fell for the second consecutive month, down 3-11% in July/22. GE's prices and demand are down as worsening economic conditions in China, low activity in the construction sector and quarantine restrictions are hitting factories hard. However, exports increased slightly.
HRC hot rolled coil: HRC price on August 9, 2022 was at 606 USD/Ton, CFR Dong A port, down about 28 USD/Ton compared to the transaction price in early July 2022. In general, the world hot-rolled steel (HRC) market fluctuates, making the domestic HRC market difficult because businesses producing flat steel (CRC, galvanized steel sheets, steel pipes, etc.) use HRC as a production material.
Production and sales situation of steel products:
July 2022:
Finished steel product production reached 2,252 million tons, down 6.19% compared to June 2022 and down 12.5% over the same period in 2021;
Steel sales of all types reached 1.99 million tons, down 11.48% over the previous month and down 12.1% over the same period;
Overall for the first 7 months of 2022:
Finished steel production in the first 7 months of 2022 reached 18.825 million tons, down 3.7% over the same period in 2021.
Sales of finished steel products reached 17.1 million tons, down 1.2% over the same period in 2021. Of which exports reached 4.146 million tons, down 1.5% over the same period last year.
Import and export situation of steel products:
Import situation:
June 2022: Finished steel imports into Vietnam reached 1.24 million tons with a turnover of 1.38 billion USD, down 2.85% in volume and down 1.44% in value compared to the previous month but up 10.43% in volume and up 20.81% in value over the same period in 2021;
In the first 6 months of 2022, imported finished steel products of all kinds to Vietnam were about 6.49 million tons with a value of more than 6.97 billion USD, down 8.58% in volume but up 20.32% in value compared to the same period in 2021.
The main steel supply countries for Vietnam include: China (45.52%), Japan (15.78%), Korea (10.45%), Taiwan (9.35%) and India (7.27%).
Export situation:
In June 2022, Vietnam's finished steel exports reached 860 thousand tons, up 15.79% over the previous month but down 15.05% over the same period in 2021. Export value reached 913 million USD, up 12.98% over May 2022 but down 1.08% over the same period in 2021.
In the first 6 months of 2022, Vietnam exported about 4.38 million tons of steel, down 17.49% over the same period last year. Export value reached 5 billion USD, an increase of 11.3% over the same period in 2021.
Vietnam's main export markets are: ASEAN region (45.07%), EU region (20.51%), United States (9.09%), Korea (7.14%) and Taiwan (China) (5.16%).
(Excerpt from Steel Association Newsletter August 2022)