Steel industry to see tougher competition with newcomers

five-new-steel-mills-with-a-combined-capacity-of-1-5-million-tons-per-year-will-start-operations-this-year-making-supply-further-exceed-demand-and-leading-to-a-fiercer-competition-in-the-local-steel-8-100x100

Five new steel mills with a combined capacity of 1.5 million tons per year will start operations this year, making supply further exceed demand and leading to a fiercer competition in the local steel market. The steel mills of Thai Trung Steel Co. in Thai Nguyen, An Hung Tuong Steel Co. in Binh Duong, Middle Region Steel Co., Pacific Steel Co. and Dana-Italy Steel Co. in Danang are scheduled to begin production this year. With the additional capacity of these new plants, the total steel capacity of the country will rise to 11 million tons a year. The annual steel consumption in Vietnam is now some five million tons, less than half of the production capacity of domestic steel mills, said Nguyen Tien Nghi, vice chairman of the Vietnam Steel Association (VSA). While Vietnam's steel exports are facing stronger trade defense in foreign countries, the fact that more steel plants will be put into operation this year will make the competition among local steelmakers more … [Read more...]

Trade remedies application should harmonise businesses’ interests

Although trade remedies are necessary amid the strong liberisation of trade, the problem is how to ensure domestic steel producers’ interests while applying these tools, many insiders have said. Data from the Vietnam Steel Association (VSA) shows that Vietnam turned out nearly 15 million tonnes of steel products in 2015, up 21.5% year on year – and sold almost 17.9 million tonnes (including imported products), up 26% annually. However, the steel industry faced 12 trade remedy and anti-dumping lawsuits in its export markets last year. It also witnessed an influx of imported steel, with over 13 million tonnes of steel products worth 9 billion USD, compared with 2.8 million tonnes of exported steel valued at 2 billion USD. With export destinations to be expanded in 2016, Vietnam ’s steel industry will have more opportunities to ship its products overseas and reach its target growth rate of 15 to 20%. Nguyen Phuong Nam, Deputy Director General of the Ministry of … [Read more...]

Imported steel poses a threat

Workers load imported steel at Hai Phong Port in the northern city of Hai Phong. About 13.7 million tonnes of steel products were imported in 2015, up 23 per cent year-on-year. — VNA/VNS Photo Hoang Hung

HA NOI (VNS) — Viet Nam risks being flooded by imported steel products, warned Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association (VSA), at a meeting in Ha Noi on Wednesday to review the association's performance in 2015. Sua cited the increasing volume of rolled steel, steel bars and galvanised steel products imported from foreign countries. Statistics released by the VSA showed that about 13.7 million tonnes of steel products were imported in 2015, up 23 per cent year-on-year, and more than 1.8 million tonnes of steel billets, up 198 per cent from the previous year's figure. Over 1.6 million tonnes of rolled steel and steel wire were imported last year while the country was able to produce only 1.1 million tonnes of rolled steel. According to the VSA Vice Chairman, steel from China amounted to more than 8.4 million tonnes, worth over US$3.7 billion, and accounting for 60 per cent of Viet Nam's imported steel. The figures represent year-on-year increases of 57 … [Read more...]

Vietnam at risk of being flooded by imported steel

1814384-steel

Vietnam risks being flooded by imported steel products, warned Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association (VSA) at a meeting in Hanoi on January 13 to review the association’s performance in 2015. Sua cited the increasing volume of rolled steel, steel bars and galvanised steel products imported from foreign countries to clarify his views. Statistics released by the VSA showed that about 13.7 million tonnes of steel products were imported in 2015, up 22.56% year-on-year, and more than 1.78 million tonnes of steel billets, up 198% from the previous year’s figure. Over 1.62 million tonnes of rolled steel and steel wire were imported last year while the country was able to produce only 1.13 million tonnes of rolled steel. According to the VSA Vice Chairman, steel from China amounted to more than 8.4 million tonnes, worth over US$3.7 billion, accounting for 60% of Vietnam’s imported steel. The figures represent year-on-year increases of 57% … [Read more...]

Vietnam at risk of being flooded by imported steel: official

(Photo for illustration)

Vietnam risks being flooded by imported steel products, warned Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association (VSA) at a meeting in Hanoi on January 13 to review the association’s performance in 2015. Sua cited the increasing volume of rolled steel, steel bars and galvanised steel products imported from foreign countries to clarify his views. Statistics released by the VSA showed that about 13.7 million tonnes of steel products were imported in 2015, up 22.56 percent year-on-year, and more than 1.78 million tonnes of steel billets, up 198 percent from the previous year’s figure. Over 1.62 million tonnes of rolled steel and steel wire were imported last year while the country was able to produce only 1.13 million tonnes of rolled steel. According to the VSA Vice Chairman, steel from China amounted to more than 8.4 million tonnes, worth over 3.7 billion USD, accounting for 60 percent of Vietnam’s imported steel. The figures represent year-on-year … [Read more...]

Steel imports soar last year

Steel products are seen at a storage facility of a steel firm in Ba Ria-Vung Tau Province. Steel imports totaled 15 million tons last year, up 28.3% year-on-year - PHOTO: VAN NAM

Hung Le The department cited preliminary statistics of the General Department of Customs as reporting that steel imports inched up 1.1% in December against November to 1.25 million tons, sending the total volume to over 15 million tons worth more than US$7.3 billion. Local steel producers said more than half of the total volume came from China, followed by Japan, South Korea and Taiwan. A report of the General Department of Customs indicated that steel imports from the northern neighbor surged over 60% year-on-year and made up more than 60% of total steel imports in the January-November period. The Vietnam Steel Association said Chinese steel products flooded the domestic market, making life tough for local producers. The reason was that Chinese enterprises stepped up exports to reduce oversupply at home. China can export more than 100 million tons of steel a year and much of the volume is shipped to overseas markets, including Vietnam. Despite an upsurge in import volume … [Read more...]

Vietnam investigates steel imports amid dumping fears

As of the end of November, more than 13.8 million tonnes of iron and steel worth US$ 6.97 billion were imported to Vietnam. (Photo: vnexpress.net)

The Vietnam Competition Authority said that the Minister of Industry and Trade had ordered an investigation against imported steel ingots and steel bars for the application of safeguards. The decision was made amid concerns that imported steel, mainly from China, was weighing down the domestic steel industry. Chinese steel producers were seeking to boost exports due to the slowdown in the second largest economy causing high inventories. Steel was the fourth product that the industry and trade ministry investigated for safeguards since 2009, besides float glass, vegetable oil and seasoning powder, according to Dau Tu (Investment) newspaper. The investigation was carried out following the proposal of four local steel companies, Hoa Phat Steel Joint Stock Company, Southern Steel Company, Thai Nguyen Iron and Steel Joint Stock Corporation, and Viet Y Steel Joint Stock Company, who accounted for 34% of the domestic output. The investigation period to determine damages was … [Read more...]

Vietnam investigates steel imports from China amid dumping fears

The Vietnam Competition Authority said that the Minister of Industry and Trade had ordered an investigation against imported steel ingots and steel bars for the application of safeguards. The decision was made amid concerns that imported steel, mainly from China, was weighing down the domestic steel industry. Chinese steel producers were seeking to boost exports due to the slowdown in the second largest economy causing high inventories. Steel was the fourth product that the industry and trade ministry investigated for safeguards since 2009, besides float glass, vegetable oil and seasoning powder, according to Dau Tu (Investment) newspaper. The investigation was carried out following the proposal of four local steel companies, Hoa Phat Steel Joint Stock Company, Southern Steel Company, Thai Nguyen Iron and Steel Joint Stock Corporation, and Viet Y Steel Joint Stock Company, who accounted for 34% of the domestic output. The investigation period to determine damages was between … [Read more...]

Vietnam launches safeguard investigation as domestic steelmakers hurt by Chinese imports

1798952-eanyt8k4

The Vietnamese Ministry of Industry and Trade has launched a safeguard investigation into imports of steel billets and bars, at a time when domestic steelmakers are hurt by imported products, particularly from China. The probe is carried out to determine whether Vietnam should take a safeguard action, such as levying higher duties on the imports, according to the directive signed by Minister Vu Huy Hoang. Safeguard action is among three trade remedies as per international law, besides anti-dumping action and countervailing duty measures, according to the Vietnam Competition Authority (VCA) under the ministry. The investigation has been initiated in the wake of a complaint lodged by a group of four domestic steelmakers, which collectively account for 34.2 percent of the country’s supply of the said products. The companies, including Hoa Phat Steel JSC, Southern Steel Corp., Thai Nguyen Iron and Steel JSC and Vietnam Italy Steel, demanded that the trade ministry review … [Read more...]

Inferior steel imports weaken sector

1792022-ton-ma-2

Counterfeit and low-quality steel and iron products imported in bulk into Vietnam are tormenting the local steel sector’s major operators. According to the Vietnam Steel Association (VSA), the volume of low-quality imported iron has risen abruptly in recent years. Some 1,755 tonnes of coated steel was locally marketed last year. In this year’s first nine months, imported iron from China into Vietnam rose sharply, holding over 30% of the market share. More critically, counterfeit and low-quality products are seen nationwide now, though in past years, they were mainly restricted to certain localities such as Thanh Hoa, Haiphong, Bac Ninh, Bac Giang, and Thai Nguyen. Local producers reportedly incurred losses of VND935 billion (US$43 million) in this year’s first eight months due to the overwhelming presence of counterfeit and low-quality items. The steel sheet brand of the Hoa Sen Group is being imitated the most throughout the domestic market, as this steel giant … [Read more...]

Vietnam’s steel market on the up

1792000-steel

Vietnam's steel market showed growth in both production and business in the first 11 months of this year, according to the Vietnam Steel Association (VSA). In the first 11 months of this year, total output of building steel gained a year-on-year increase of 30.1% to reach 6.1 million tonnes, the association said. This was the highest average growth rate of steel in recent years. Meanwhile, steel consumption saw a year-on-year surge of 24.3% to 5.9 million tonnes of steel in the first 11 months of the year. Vietnam Steel Corporation and Hoa Phat were the two leading manufacturers in the local steel market, with an output of 1.35 million tonnes and 1.27 million tonnes of steel, respectively. The association reported in November that steel makers manufactured 1.3 million tonnes, 28% higher than the same period last year, including 627,700 tonnes of building steel. Meanwhile, the volume of consumption of building steel surged by 30% year-on-year to 593,000 tonnes. In November … [Read more...]

Steel industry growth hits record in 11 months

The steel industry has seen a record growth over the first 11 months this year, up 30.1% from the same period last year, according to the Vietnam Steel Association. Producers sold nearly 5.9 million tonnes of building steel products to the local market, gaining a year-on-year increase of 24.3 percent in the reviewed period. The two key producers are the Vietnam Steel Corporation with 1.35 million tonnes and Hoa Phat Steel Company with 1.27 million tonnes, together making up of 43% of the market share. The Association reported that in November alone, the consumption of building steel saw an increase of nearly 30 percent from the same period last year to hit 593,000 tonnes. Vice President of the Association Nguyen Van Sua said industry insiders have renovated technologies to reduce cost, improve their competitiveness, and better integrate into the international market. He also called for relevant bodies to take technical measures to better manage import-export activities to … [Read more...]

Vietnam steel producer proceeds with giant mill despite oversupply worries

1788893-hoasen-lsys

A factory of Hoa Sen Group. Photo credit: Saigon Times Online A subsidiary of Hoa Sen Group, one of Vietnam's biggest steel producers, has acquired a license to develop a VND2-trillion (US$87.48 million) mill in the central province of Binh Dinh. Work on the factory of Hoa Sen Nhon Hoi-Binh Dinh Co., Ltd. is scheduled to start this month and complete in June 2017, with a designed capacity of 200,000 tons a year. Last month Hoa Sen Group along with another steel giant, Hoa Phat Group, were reported to be seeking to take over a multi-billion dollar steel project in the central province of Quang Ngai, after Taiwanese investors dropped it due to financial reasons. With their expansion plans, the giants have apparently stayed unaffected by the oversupply and cheap imports, which were believed to have driven many local producers to the verge of shutting down. In its recent plea for the government's help, the Vietnam Steel Association said local steel output is estimated 22 million tons … [Read more...]

Hoa Sen builds $94 million steel sheet plant in Binh Dinh

1788384-tonhs

Vietnamese steel producer Hoa Sen Group (HSG) on December 7 received the investment certificate to build a VND2 trillion ($94 million) steel sheet plant in the central province of Binh Dinh, according to the provincial Economic Zones Management Authority’s website. The 12.4 hectare plant, to be built in the Nhon Hoi Economic Zone, has the capacity of 200,000 tonnes of stainless steel sheet, colour-coated steel sheet, and cold rolled steel. Construction is going to begin this month and operation is going to start in June 2017. HSG made VND651 billion ($30.5 million) in net profit in the fiscal year 2015, which lasted from October 1, 2014 to September 30, 2015, up 58.7 per cent on year on revenue of VND17.45 trillion ($819 million), up 16.4 per cent on year. The company now accounts for 40 per cent of the Vietnamese market for steel sheets and 20 per cent that for steel pipes. According to the Vietnam Steel Association, in October sales of stainless steel and colour coated steel … [Read more...]

VN steel industry beset by problems

1787817-20151204140314-1

Vietnam’s steel industry is facing intense competition as Chinese imports have surged considerably this year. Questions over origin, inferior quality, and commercial fraud have become pressing problems. "The appearance of counterfeit and poor quality steel affects consumers, genuine manufacturers, the domestic steel sheet industry, and the economy at the macro level," said Mr. Vu Van Thanh, Deputy Director General of the Hoa Sen Group. Mr. Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association, said that the amount of steel imports has surged considerably this year, with Chinese galvanized steel being imported in large quantities at lower prices. "In the first nine months of 2015 steel sheet manufacturers sold only 2.27 million tonnes while the volume of imports consumed in the domestic market was 1.08 million tones," he added: "The amount of imported steel accounted for 32.2 per cent of the home market. This has inflicted major damage on domestic galvanized steel … [Read more...]

Vietnam mulls trade remedies against cheap steel imports: report

1784024-steel-kamj

A file photo of a worker working at a Vietnamese steel mill. Photo: Diep Duc Minh Vietnam may take remedial action against imported steel as an influx of cheap imports has reportedly threatened the local steel industry. News website Bao Dau Tu reported Friday that local producers have received support from Deputy Prime Minister Hoang Trung Hai. He ordered the Ministry of Industry and Trade to provide steel producers with guidance and consultancy on the actions, when necessary, according to the website. Figures from the Vietnam Steel Association showed that the country imported 12.62 million tons of iron and steel in the first ten months, up 34 percent year on year and posting the revenues of US$6.28 billion. More than 61 percent of the imports were from China. Chairman Ho Nghia Dung told the website that the excessive imports of Chinese steel have put a lot of pressure on local producers who have struggled to sell their products. Local steel output is estimated 22 million tons … [Read more...]

Steel imports from China surge in Jan-Oct

Steel products are put up for sale at a retail construction material outlet in HCMC. Steel imports from China amounted to 7.7 million tons in January-October, soaring 62.1% year-on-year - PHOTO: THANH HOA

Van Nam This import volume accounted for 61% of Vietnam’s total in the period, show statistics of the department. The period saw steel imports from China growing month after month. For instance, Vietnam imported 965,000 tons of steel from China last month, rising by 25.5% against the previous month and making up 65.2% of 1.48 million tons of steel worth US$577 million Vietnam imported in the month. According to the customs, more than 12.6 million tons of steel was imported into Vietnam between January and October, a 34% year-on-year rise. Ho Nghia Dung, chairman of the Vietnam Steel Association (VSA), told the Daily that local steel makers have felt the pinch of the huge steel influx from China. Sitting on huge steel stockpiles, China exports around 20 million tons of steel to Southeast Asian markets a year, with Vietnam accounting for 30%. "Management agencies are preparing trade defense measures and technical barriers to prevent massive steel imports from China … [Read more...]

Vietnam’s imports of Chinese steel rise 62% in Jan-Oct: customs

1781132-hnhpbdmx

Vietnamese steelmakers are hurt by the huge imports of Chinese products, which rose 62.1 percent year on year in the January-October period, the General Department of Vietnam Customs has said. Vietnam spent US$3.49 billion importing 7.71 million metric tons of steel from China during the ten months, a 39.8 percent increase in value, the customs department said in a report on November 19. Chinese products accounted for as much as 61.1 percent of Vietnam’s total steel imports in the period. The Southeast Asian country’s steel imports totaled 12.62 million metric tons and $6.28 billion between January and October, up 34 percent in volume and 0.3 percent in value, according to customs figures. The average import price then dropped 25.2 percent from a year earlier, so the import value only went up slightly, the customs department explained. The large imports of Chinese steel are creating huge pressure on and difficulty for Vietnam’s domestic manufacturers, Ho … [Read more...]

Breakfast @ Tuoi Tre News – November

Politics    -- Former Vietnamese Deputy Prime Minister and Minister of Foreign Affairs Nguyen Manh Cam was presented with an ASEAN People's Award at the opening of the two-day 27th ASEAN Summit in Malaysia on Saturday.    Society

What you need to know in Vietnam today: -- Patronized by the Indian Consulate General in Ho Chi Minh City, the Indian Women's Association, which gathers the country’s female experts in various fields, was launched on Saturday. -- The Ho Chi Minh City People’s Committee has approved a feasibility report of a plan to combat tide-caused flooding which also takes climatic conditions into consideration. The plan, projected to cost VND9.92 trillion (US$434.3 million), includes the construction of tide-control sewers and dykes in several districts. -- The body of a worker trapped inside a coal mine located in the northern province of Hoa Binh was recovered on Saturday – three days after the mine gave way, killing another worker. Rescue efforts are ongoing for the other stranded victim. -- The People’s Committee in Chau Doc City, located in the Mekong Delta province of An Giang, on Saturday directed that a document released by the city’s Department of … [Read more...]

Breakfast @ Tuoi Tre News – November 14

1775294-irosldu2

Have a hearty breakfast, readers! Politics -- Vietnam reiterates that the country has full historical and legal evidence to prove its sovereignty over islands in the East Vietnam Sea, Nguyen Minh Nguyet, deputy director of the Department of International Law and Treaty under the Ministry of Foreign Affairs, said at the 25th annual workshop on constraining latent conflicts in East Vietnam Sea opened in Jakarta, Indonesia, on Friday. Society -- The head of the Vam Cong ferry, which connects the two southern provinces of Dong Thap and An Giang, and his deputy, along with three ferry staffers, were suspended from work on Friday pending investigation after Tuoi Tre (Youth) newspaper published an article showing that drivers of vehicles were allowed to use the preferential lane at the ferry after paying a "passage fee" of up to US$4.5 to ferry staffers. -- Nearly 1,000 workers at wholly Japanese-owned MLB Tenergy Co., Ltd., located in the Yen Thanh town Industrial Cluster in the … [Read more...]