Vietnamese steel exports in November surged 40pc from the prior year to over 478,300mt, according to Vietnam Steel Association (VSA). Steel exports in November rose by 21.52pc from October. Despite a recovery in demand, exports increased due to production ramp-ups by mills, states the association.
Since the second half of 2020, the daily operations at mills gradually picked up, after the COVID-19 pandemic earlier this year. The economy in November, continued to recover, embracing the new normal. Production activity, business expansions, trades, and consumption continued to grow, aiding the steel market, states VSA.
Vietnam steel association member mills produced more than 2.45mn mt of crude steel in November, a rise of 4.34pc from the earlier month and 15.6pc from the prior-year month. Sales of steel products created a new record reaching an all-time high of 2.4mn mt, an increase of 36.9pc from October, and 20.9pc over the same period last year.
In the January-November period, steel production, sales, and exports did not show a substantial change. Crude steel production increased only 1pc over the same period last year, reaching 23.3mn mt, while sales decreased by nearly 1pc to 21mn mt. Exports of finished steel fell 2.8pc to 4.1mn mt over the same period in 2019.
Prices on an uptrend amid trade tensions
Vietnam Steel Association stated that increasing trade tensions between various countries, protectionism mechanisms, and the impact of the COVID-19 pandemic drove steel prices to rise. Amid short supply, prices for raw materials, including scrap and iron ore, reached an eight-year high in November and December in Vietnam.
In the domestic market, finished steel prices, including rebar, settled at an average of about VND12,000-12,500/kg in early December. Construction steel sold above VND15,000/kg, up by about VND3,000/kg from November. While imported HMS 1&2 (80:20) increased over $50/mt since early December on global cues.