VIETNAM STEEL INDUSTRY
Steel industry is the important heavy in the industrialized world; therefore, the fluctuations in the industry will directly affect the field of industrial production and impact on the economic growth. Steel industry in 2017 recovered strongly after 2 years of continuous decline. Global steel production is estimated at 1,674 million tons, up 5.5% from 2016. Asia is currently the world’s main steelmaker, accounting for 69% of total steel output in 2017. China has grown steadily, surpassing India as the third largest steel producer in the world.
It is forecast that demand for steel in 2018 will grow 1.6% to reach 1,648.1 million tons. The strongest growth comes from developing regions, especially Asia. In the first 9 months of 2018, Vietnam steel market still had positive growth compared to the same period last year. Production and consumption of all products have positive growth. Generally for the first 9 months of 2018, total production of steel production reached 17.84 million tons, an increase of 15.65% compared to the same period last year. In the first 9 months of 2018, total steel consumption reached 16.15 million tons, an increase of nearly 25% compared to the first 9 months of 2017. Of which, construction steel consumption reached 7.39 million tons (up 9.99%), steel pipes reached 1,776 million tons (up 10.32%), galvanized steel reached 2.849 million tons (up 10.44%).
Vietnam steel industry is always in a state of imbalance, excess of crude steel but lack of other steel products due to many product lines in the country are not able to produce, such as steel billets, hot rolled coil sheets, shape steel, steel plate, etc. The domestic machinery and technology are only medium compared to the world, mostly using machinery and technology discharged from China, leading to large energy consumption, low technology and high production cost, resulting to hardly compete with cheap imported steel from China. In 2018, iron and steel prices are forecast not to increase as demand in some regional markets such as China is likely to decline, while domestic demand will not increase.
It is forecast that steel consumption growth in 2018 is about 22% to 23.1 million tons. In which, construction steel will increase by 10%, hot rolled coil 154%, cold rolled coil steel sheet 5%, steel pipe 15%, gold plating and color coating 12%. Accordingly, the output of construction steel reached about 10.04 million tons, steel pipes reached 2.53 million tons and galvanized steel reached about 3.92 million tons.
|I. Business environment
1. Macroeconomic context
2. Legal framework
II. Global market
III. Local market
1. History of development
2. Industry value chain
4. Construction steel
5. Steel pipe
7. Import – export
8. Sheet plate
9. Import – export
IV. Plan of industry development
V. Enterprise analysis
1. Enterprise introduction
2. Financial analysis
|Hoa Phat Joint Stock Company
Hoa Sen Group
Nam Kim Steel Joint Stock Company
Pomina Joint Stock Company
DANA Iron and Steel Joint Stock Company
Thai Nguyen Iron and Steel Company
Vietnam Steel Corporation
Viet – German Steel Joint Stock Company
VISCO Steel company
Figure 1: Growth rate of GDP by quater, 2015 – Q3/2018
Table 1: Old anti-dumping tax and new anti-dumping tax
Table 4: Steel consumption growth rate by industry between regions 2014 – 2016 (%)