According to the report, steel production activities showed signs of recovery in mid-2023, contributing to the increase in overall supply. Producers tend to return to profitability following adjustments in input costs such as ore and coal, supporting profit margins.
As competition in China's construction steel exports has decreased, the industry has been exhibiting a strong recovery since August 2023. In particular, in November, Vietnamese companies exported over 7.4 million tons of steel, an increase of 29% compared to the same period last year. Main export markets include ASEAN, EU, USA, India and Taiwan.
Export volumes in galvanized products showed a significant recovery from the lowest level in August 2022, although they did not reach 2021 levels. Steel exports to the EU market played an important role in this recovery, although supplies were affected by the earthquake and power outages in Turkey.
Steel consumption is expected to increase by 1.9% in 2024. This increase, especially in major markets such as the EU and the USA, is expected to have a positive impact on export steel production and prices. However, as slow growth is predicted in China, Vietnam's steel industry has an opportunity to increase exports with other potential countries.
Despite this positive trend, fluctuations in international trade policies may affect the steel industry. Trade protection measures or tariff changes may pose new challenges or opportunities for steel businesses. Therefore, steel enterprises have to look for new export markets in order to ensure income diversity and maintain stability.
In general, the steel industry is expected to see signs of recovery in the export market in 2024, especially in major markets such as the EU and Mexico. This could present an opportunity for Vietnamese steel enterprises to build and develop their brand on the global steel map.
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