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Tag: steel

  • Vietnam Surpasses Italy to Become 10th Largest Global Steel Producer

    Vietnam Surpasses Italy to Become 10th Largest Global Steel Producer

    In April, Vietnam emerged as the 10th top crude steel producer in the world with an estimated production of 2.1 million tonnes. This landmark achievement marks the first time Vietnam has entered the top ten, surpassing Italy, as per the World Steel Association’s data.

    Growth of Vietnam’s Steel Sector

    During the first quarter of 2026, Vietnam’s crude steel production reached 8.5 million tonnes, marking an 8.4% rise from the previous year. The growth of Vietnam’s steel sector has been both quick and diverse. Initially, domestic manufacturers relied heavily on imported billets for the production of construction steel in the early 2000s.

    However, significant progress has been made since 2010, with the industry achieving self-sufficiency. At present, Vietnam is capable of manufacturing a wide array of steel products that cater to sectors like mechanical engineering, shipbuilding, energy, and defense.

    Prominent steel companies have launched large-scale and modern steel complexes. Noteworthy among these is Hoa Phat Group’s Hoa Phat Dung Quat Iron and Steel Integrated Complex. The facility is renowned for producing top-tier, specialized steel products such as engineering steel, tire cord steel, welding wire, spring steel, crane steel, prestressed steel, and rail steel for high-speed railways.

    Vietnam’s Position in the Global Steel Market

    In comparison to the 20 million tonnes produced in 2023, Vietnam’s crude steel output increased to 24.6 million tonnes in the previous year. This placed the country as the leading crude steel producer in Southeast Asia and the 11th globally.

    Hoa Phat, one of the country’s significant steel producers, contributed to 44.7% of the total production, equivalent to 11 million tonnes. The company’s annual yield is projected to rise by 30% year-on-year to exceed 14 million tonnes this year.

    Questions & Answers

    What position did Vietnam secure in the global ranking of crude steel producers in April?
    Vietnam emerged as the 10th top crude steel producer in the world in April.

    What significant transformation has Vietnam’s steel sector undergone since the early 2000s?
    From relying heavily on imported billets for construction steel in the early 2000s, Vietnam’s steel sector has achieved self-sufficiency and can now produce a wide array of steel products.

    What is the projected annual yield of Hoa Phat for this year?
    Hoa Phat’s annual yield is expected to surpass 14 million tonnes this year, marking a 30% year-on-year increase.

  • Steelmaker Hoa Phat in the red after 13 years

    Steelmaker Hoa Phat in the red after 13 years

    Leading steelmaker Hoa Phat lost VND1.79 trillion ($73 million) in the third quarter, its first quarterly loss in 13 years.

    It reported revenues of VND34.44 trillion in the quarter, down 12% from the same period last year and 8% from the previous quarter.

    Its revenues have declined steadily after peaking in the fourth quarter of last year.

    Steel demand is down in both Vietnam and globally, raw material prices have risen sharply – by three times in the case of coal – and exchange and interest rates have become adverse, the company said to explain the loss.

    For the first nine months, the company’s revenues were VND116.6 trillion, with the steel segment contributing 90%, and profits topped VND10.44 trillion.

    It said the agricultural segment was profitable again, with revenues and profits rising by 10% and 32% year-on-year in the third quarter.

    Another major steel firm, Nam Kim, announced Friday that it racked up losses of over VND400 billion in the third quarter. It dragged the profits for the year down to VND290 billion, a sixth of the figure a year earlier.

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  • Steelmaker Hoa Phat’s sales surge 32% in two months

    Steelmaker Hoa Phat’s sales surge 32% in two months

    Vietnamese steel giant Hoa Phat Group saw a 32% rise in sales volume of steel products in the first two months of this year, the firm reported.

    In the January-February period, Hoa Phat sold 1.15 million tonnes of hot rolled steel products (HRC), construction steel, high quality steel and steel billets. Meanwhile, the firm produced 1.38 tonnes of crude steel, an increase of 71% over the same period last year.

    However, in February, the firm saw a considerable drop in steel sales volume compared to that in January, mostly due to the long Lunar New Year holiday. In the month, Hoa Phat produced 690,000 tonnes of crude steel, a similar output as January.

    In the month, its sales volume of hot rolled steel products, construction steel, high quality steel and steel billets was 518,000 tonnes, down 19% compared to the first month of the year.

    Meanwhile, the firm sold 212,000 tonnes of construction steel and high quality steel, down 42% compared to January, along with 266,000 tonnes of HRC products, 41,000 tonnes of steel pipes, and 32,000 tonnes of galvanized steel.

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  • Construction steel sales reach year-high in September

    Construction steel sales reach year-high in September

    Construction steel sales hit 958,500 tons in September, the highest in nine months, and posting positive growth for the first time this year.

    Sales went up 9% from August and 4% year-on-year, according to the Vietnam Steel Association.

    Industry leader Hoa Phat Group posted its biggest sales last month since the beginning of the year.

    The company saw construction steel sales rising 15% from August to 352,000 tons.

    Vnsteel saw sales rising 8% from August to 265,000 tons.The increase in construction steel demand came thanks to major infrastructure projects being developed such as North-South highways and airport upgrades.

    Steel prices have been steady throughout September and at the lowest level since 2020, which stimulated demand.
    But overall, the steel industry is still seeing low demand, the VSA said. In the first nine months 7.7 million tons of construction steel were sold, down 20% year-on-year. Exports fell 13% in the same period.

    Prices are set to remain at current levels until the end of the year, according to a KB Vietnam Securities forecast.
    A hike in domestic demand is expected early next year as property projects see difficulties in acquiring permits will be resolved, it added.

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  • Steel prices hit 3-year low

    Steel prices hit 3-year low

    The price of steel has plunged to the lowest in three years to around VND13.5 million ($562.09) per ton amid declining demand.

    Hoa Phat Group, which accounts for 30% of the domestic market, has lowered its rolled steel prices by 2.17% from a week ago to around VND13.53 million per ton.

    Other companies such as VAS, Tungho and Thep My sold their steel at the same price. This is the 18th decline in steel prices this year.

    Although August is considered a high time for construction work, sellers have been posting low sales.

    Hung Vu, a steel seller in Hanoi’s Ha Dong District, said that since early July sales have plunged 60% year-on-year. Most manufacturers have cut production.

    Hoa Phat in the first seven months produced nearly 3.5 million tons of steel, down 30% year-on-year. Its sales also dropped 23% to 3.46 million tons.

    In the first seven months, Vietnam imported 31% less steel than last year, according to the Ministry of Industry and Trade.

    The Vietnam Steel Association expects the price drop to persist in the coming months.

    Vietcombank Securities said in a note that prices would not recover this year as demand from China remained low.

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  • EC launches anti-dumping investigation into Vietnam’s steel

    EC launches anti-dumping investigation into Vietnam’s steel

    The European Commission (EC) has announced the launch of anti-dumping and anti-subsidy tax investigations into cold-rolled stainless steel products imported from Vietnam.

    The investigations are being conducted at the request of the European Steel Association (EUROFER), according to the Trade Remedies Authority under the Ministry of Industry and Trade.

    The products concerned by the possible circumvention is flat-rolled products of stainless steel.

    The investigations will be implemented in nine months.

    Interested parties must make themselves known by contacting the EC within 15 days from the announcement, and c

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  • Pomina Steel to sell stake to Japanese firm

    Pomina Steel to sell stake to Japanese firm

    Pomina Steel has agreed to sell nearly 70.2 million shares, a 20% stake, to Japan’s Nansei steel.

    The company will sell at VND10,000 ($0.42) per share, 35% higher than its market price. The deal, to be conducted in August this year and September next year, is estimated to fetch Pomina nearly VND702 billion.

    Nansei Steel is based in Japan’s Chiba. It first established a Vietnam entity around six months ago. Pomina’s announcement has seen its shares shoot up from VND6,900 to around VND7,390.

    Currently Vietnam Steel Corp is the biggest shareholder in Pomina with a 53.3% stake.

    Pomina, based in Ho Chi Minh City, has been facing financial difficulties. It posted a loss of VND1.1 trillion last year and another VND186 billion in the first six months of this year.

    Its CEO Do Tien Si said that the frozen property market had caused steel demand to plunge, and the high costs of its new blast furnace, were the main reasons for the losses .

    The company expects a loss of VND150 billion this year.

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  • Construction steel prices lowest in two months

    Construction steel prices lowest in two months

    Prices of construction steel have dropped by VND200,000 (US$8.50) per ton, the 10th decline in a row, to VND14.5 million, the lowest rate in the last two months.

    Companies like Hoa Phat, Viet Y, Viet Duc, and Viet Nhat have cur prices by a cumulative VND1.5 million per ton since early April.

    The Vietnam Steel Association attributed the lower prices to weak demand.

    However, the price reduction has helped boost production and demand in the last two months. Over 812,000 tons of construction steel were produced in May, up 14% from April, while 927,000 tons of the product were sold, up 26%, the highest growth rate since the beginning of this year, according to the association.

    Hoa Phat Group, which holds one-third of Vietnam’s construction steel market share, said it sold 530,000 tons of steel of all kinds in May, up 16% against April. Specifically, it sold 284,000 tons of construction steel, up 33%.

    Steelmakers said they experienced hardship in the second half of last year, saw improved performance in the first quarter of this year, and would make profits in the second quarter.

    However, VNDirect Securities Corporation said steel demand would remain weak throughout 2023.

    Total sales of construction steel and galvanized steel are likely to decrease by 9.2% and 7% this year to 9.5 million tons and 3.9 million tons, respectively, it predicted.

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  • Construction steel sales fall 15% in April

    Construction steel sales fall 15% in April

    According to the Vietnam Steel Association, over 735,000 tons of construction steel were sold in April, the second-lowest monthly sales figures since 2022.

    The sale was down 15% against the same period last year.

    Over 710,000 tons of construction steel were produced, posting the smallest monthly output since 2022, and a year-on-year drop of 37%.

    According to Hoa Phat Group, which holds one-third of the market share for construction steel, demand remained weak worldwide, so it sold only 214,000 tons of construction steel in April, down 28%.

    To spur sales, Hoa Phat on May 19 reduced the price of rebar by VND200,000 (US$8.50) to VND15.09 million per ton. Other steel makers lowered the price by VND150,000-250,000.

    Since early April, steel prices have decreased six times. At present, the average price of most common products is around VND15 million per ton, similar to that in October 2022 when steel demand started to plummet.

    According to Vietcombank Securities Company, steel prices started to fall in late April when prices of input materials such as iron ores, steel scrap and coke went down.

    Construction steel prices are likely to drop further in the coming time because of weak demand, the company said, noting that real estate developers and people are discouraged to build houses amid economic difficulties with high lending interest rates.

    According to the World Steel Association, the global steel demand is likely to increase by 2.3% to 1.82 billion tons this year, and by 1.7% to more than 1.85 billion tons next year. However, the demand will still be affected by high leading interest rates.

  • Steel prices drop after upward streak

    Steel prices drop after upward streak

    Weak demand has begun pushing steel prices down after they climbed to a seven-month high in March.

    Leading steel manufacturer Hoa Phat Group has accordingly lowered its rebar steel price by 0.63% to VND15.89 million ($677.55) per ton.

    It also brought the price of wire rod steel price down 1.88% to VND15.66 million per ton.

    Viet Y Steel lowered its product prices by the same rate to VND15.86 million for rebar steel and 15.61 million for wire rod steel.

    The decline now has steel prices down from their seven-month peak recorded at the end of March. Prices had been rising since last year.

    Hoa Phat reported that the lower prices reflect a decline in material costs, while Viet Y said that the adjustment was made according to market fluctuations.

    Steel products sales in the first two months of 2023 plunged 23% year-on-year to 3.8 million tons, while exports dropped 10% to 1 million tons, according to the Vietnam Steel Association.

    Hoa Phat, which accounts for 40% of the segment’s market share, recorded a sales drop of 34% in the first two months.

    Sales at distributor Steel Online plunged 30% year-on-year through March.

    Bui Duy Anh, deputy director of the company, told VnExpress that prices will likely drop further as demand remains low with consumers cutting spending amid ongoing inflation.

    He added that not enough public projects are being developed to significantly boost demand.

    However, not everything is pessimistic.

    “The drop, however, will have its benefits, as it will bring down costs of public infrastructure projects and urge steelmakers to find more buyers overseas,” he said.

    At the same time, the Vietnam Steel Association has reported that it expects the market to begin recovering in the third quarter of this year at the earliest.

    Brokerage VNDirect has reported it also agrees that steel consumption will likely start to rise in the third quarter.

  • Steel prices surge in face of declining demand

    Steel prices surge in face of declining demand

    Vietnam’s major manufacturers have raised steel prices to a 7-month high despite plunging demand.

    On Tuesday, Hoa Phat Group hiked its prices for rebar steel by 0.95% to VND15.99 million ($678.55) per ton.

    Local steelmakers Viet Y, Viet Duc, Kyoei and Viet My all made similar adjustments, while Pomina’s price tag towered above at VND17.6 million, 10% higher than market average.

    Manufacturers said that steel prices, which are now at their highest point since August, have been rising since October last year due to an input materials shortage prompted by declining billet production.

    Steel billets are raw steel bars not yet processed for the market, and billet makers reduced production due to low prices in earlier months.

    Steel demand will likely remain meager in upcoming months.

    Steel products sales in the first two months of 2023 plunged 23% year-on-year to 3.8 million tons, while exports dropped 10% to 1 million tons.

    Analysts at brokerage Mirae Asset Vietnam said that the steel market is largely dependent on the property sector, and the real estate market cool down this year has thus adversely affected the steel industry.

    Steel production is therefore expected to drop 10.5% from last year to under $17.9 million tons this year.

    However, manufacturers hope that public spending, which is set to hit an historic high of VND704 trillion this year, will help boost demand as the government aims to disburse at least 95% of that figure.

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  • Steelmaker Hoa Sen eyes smallest profit in 10 years

    Steelmaker Hoa Sen eyes smallest profit in 10 years

    Steelmaker Hoa Sen Group expects a modest after-tax profit of VND100 billion (US$4.2 million) to VND300 billion this year as a raft of potential pitfalls loom.

    Whichever figure it achieves will be the lowest in the last 10 years, mainly due to anticipated export difficulties.

    According to the first scenario envisioned by Hoa Sen, the company will post sales of 1.4 million tons of finished products, with revenues of VND34 trillion, and after-tax profits of VND100 billion.

    With a more optimistic scenario of selling 1.5 million tons of finished products, the company expects to gain VND36 trillion in revenue and VND300 billion in profit.

    In the last 10 years, the lowest profit target the company has ever set is VND400 billion and the highest is VND1.65 trillion.

    Hoa Sen’s management said steel exports this year have many potential uncertainties in the context of increasing competition and trade barriers.

    Tightened monetary policies and higher lending interest rates as well as foreign exchange rates will also affect the company’s production and business.

    Hoa Sen reported after-tax losses of VND680 billion from October to December 2022, the first quarter of this fiscal year.

    According to Viet Dragon Securities Corp., having incurred net losses for two consecutive quarters, the steelmaker is experiencing the most difficult period in its history.

    Hoa Sen’s difficulties are considered to be twice as bad as its competitors as it operates in both the manufacturing and retail sectors.

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  • Steel giants report huge losses in Q4

    Steel giants report huge losses in Q4

    A drop in prices and consumption put major steel businesses Hoa Phat, Nam Kim and VNSteel in the red in the fourth quarter of 2022, dragging their annual results to the lowest level in many years.

    Hoa Phat, which accounts for nearly 35% of Vietnam’s construction steel market, reported a nearly VND2 trillion (US$85 million) loss in the fourth quarter of 2022, after earning a profit of VND7.419 trillion in the same period of 2021. Losses in two consecutive quarters of Q3 and Q4 dragged the company’s profits down by around 75% compared to the first half of the year, to more than VND8.4 trillion.

    Vietnam Steel Corporation (VNSteel), accounting for 11.2% of the construction steel market, reported VND410.5 billion loss in the fourth quarter and a VND822.4 billion loss for the whole year, which was the company’s first loss since 2014 and its biggest loss since it started issuing financial statements in 2011.

    Nam Kim Steel, the leading coated steel manufacturer in Vietnam, lost VND356.3 billion in the fourth quarter, which resulted in a loss of VND67 billion for 2022, after more than 10 years of making huge profits, including VND2.225 trillion in profits in 2021.

    The steel market was gloomy last year.

    A Vietnam Steel Association report shows that steel production dropped nearly 12% from the previous year to 29.3 million tons, while steel consumption dropped more than 7% to 27.3 million tons.

    “For Vietnam’s steel industry, 2022 was a challenging year with falling consumption and complicated developments in material costs,” the report said. “Many businesses encountered difficulties and suffered losses.”

    Domestic steel prices have been falling since August 2022, hitting a two-year low of VND14 million a ton in the fourth quarter.

    The industry depends largely on public investment and the property market, the latter of which has been in a slump for months.

    VNDirect Securities Corp. projected that the industry will continue to face difficulties this year amid a low demand for construction and high manufacturing costs.

    The sector may see some upturn in the export market with China reopening and its real estate market recovering, the corporation said.

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  • Steelmaker Hoa Phat reports bigger losses in Q4

    Steelmaker Hoa Phat reports bigger losses in Q4

    Hoa Phat Group, Vietnam’s biggest construction steel firm, posted net losses of nearly VND2 trillion ($84.7 million) in Q4 last year, higher than the losses of roughly VND1.8 trillion in Q3.

    The company’s losses in Q3 was its first quarterly loss in 13 years.

    Hoa Phat made revenues of VND26 trillion in the fourth quarter, seeing a year-on-year fall of 42%, bringing the total revenues last year to VND142 trillion, down 5%, due to weaker demand for various steel products.

    Its after-tax profits were over VND8.4 trillion in 2022, down 76% against 2021.

    The firm supplied the local market with 7.2 million tons of steel products, including 4.3 million tons of construction steel, last year, posting a year-on-year drop of 7%, and holding a market share of nearly 35%.

  • Steel sector sees gloomy performance in 11 months

    Steel sector sees gloomy performance in 11 months

    The local steel market continued to be gloomy, with reductions in production and consumption in the past 11 months, a report published by the Vietnam Steel Association (VSA) this week revealed.

    Finished steel production saw a yearly decline of 11.3% to 27.12 million tonnes between January and November. According to the report, sales of finished steel also plunged 7% year-on-year to 25.1 million tonnes.

    In November alone, finished steel production reached over 1.82 million tonnes, down 11% month-on-month and 37% year-on-year while consumption of all kinds of steel hit above 1.94 million tonnes, up 3% month-on-month but down 16.2% year-on-year.

    In terms of exports, 7.54 million tonnes of steel were shipped abroad in the past 11 months, earning a turnover of $7.4 billion, year-on-year decreases of 38.1% in volume and 32% in value, according to the General Statistics Office. Sluggish consumption and high inventories caused factories to reduce their production capacities or halt production.

    According to the company, the prospect of recovering global steel demand continued to face difficulties when inflation was high. Moreover, the implementation of tight monetary policy in many countries would affect the prospect of world economic recovery in December.

    Meanwhile, the domestic market had not shown any clear signs of recovery and the real estate market faced many challenges. That would have a great influence on the steel consumption.

    All businesses were looking for ways to restore output and improve profit results in the last month of 2022, resulting in fiercer competition among factories and pushing up the selling prices of steel.

    In the recent report on the prospects of the steel industry, RongViet Securities Corp also said that the sector had little chance to recover in 2023 due to weak consumption, the pressure of the exchange rate and interest rate on financial costs.

    In 2023, the Government would foster investment in infrastructure projects with the goal of ensuring economic growth that could support domestic steel demand, especially for construction steel.

    However, the real estate industry which might not recover after a gloomy year could not help domestic steel demand rebound next year, experts have said.

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