Vietnamese steel exports to China surge 12 times in ten months

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Statistics by Vietnam Steel Association (VSA) showed that in November, sales of steel of all kinds reached more than 2.4 million tons, sharply increase by nearly 36.9 percent compared to October, and up 20.9 percent over the same period last year. Steel sales also set a record last month. Steel exports in November stood at 478,375 tons, up 21.52% over October and 40% over the same period last year, Thanh Nien reported.

Vietnam’s steel exports to China surged 12 times between January and October Photo: Thanh Nien

Steel production in Vietnam reached more than 23.33 million tons, representing a year-on-year increase of 1%. Nevertheless, steel consumption declined by almost 1%, reaching more than 21 million tons and exports decreased by 2.8% over the same period in 2019, reaching more than 4.11 million tons.

Most notably, Vietnamese steel exports to China multiplied 12 times, reaching 1.3 billion USD in the first ten months of 2020. The key export markets of Vietnamese steel products include ASEAN, China, Taiwan, the US, etc.

According to the VSA, the economy in November continued to bounce back in the new normal conditions, while production, business, trade, and consumption continued as a growth factor for the steel market.

Rolled steel produced by Hoa Sen Group. Photo: VSA

In the January-September period, Hoa Phat Group, the largest steelmaker in Vietnam recorded 65,000 billion VND (US$2,8 bln) in revenue and 8,845 billion VND (US$381 mln) in profit after tax, rising by 40% and 56% respectively over the same period in 2019. The firm exported more than 370,000 tonnes of construction steel in the first nine months of the year, representing a 95 per year-on-year rise. Its major import markets include Japan, the Republic of Korea, Malaysia, Australia, Canada, Thailand, Cambodia, and Laos.

Meanwhile, Hoa Sen Group achieved 1,150 billion VND (US$49,535) in profit after tax, up nearly 220% compared to the previous year.

The price of raw materials for steel production has skyrocketed in three recent months and set a new price in November. Photo: VNA

The price of raw materials for steel production such as iron ore and scrap steel has skyrocketed in three recent years and set a new price in November.

Along with that, trade tensions between countries, the trend of increasing trade protectionism, and the impact of the COVID-19 pandemic have resulted in an increase in steel prices.

The domestic construction steel price currently stands at an average of about VND12,000- 12,500 (US$0.5) per kilogram at the beginning of this month, depending on the type of products and enterprises.

VSA said that there are many factors affecting domestic construction steel prices. For example, in November, domestic scrap steel prices increased sharply from 700 to 900 VND per kilogram (US$ 0.030- US$ 0.039), keeping at 7,600 to 7,800 VND per kilogram (US$0.33- US$0.34); the imported scrap steel prices increased by 37 USD / ton to 350 USD / ton at the end of November 2020.

The domestic billet steel prices increased by 1,000 - 1,200 VND per kilogram (US$ 0.043- US$0.052), keeping at 11,400 to 11,600 VND per kilogram (US$ 0.49- US$ 0.50).

Specifically, the price of raw materials for steel production increased dramatically in the global market last month, which affected its price in Viet Nam.

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