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The trade tensions continued to be a hot topic when Turkey recently imposed an anti-dumping duty on HRC products from the EU and Korea. This decision is seen as retaliation from Turkey based on the fact that their country's HRC source was previously taxed by Europe.The overview of imposing anti-dumping HRCSince January 2021, the Turkish has started an anti-dumping investigation on hot rolled coils imported from the EU and Korea. The investigation was initiated by requirements from the Turkish Steel Association on behalf of domestic steel producers.Hot rolled coil products in the investigation list have codes including 7208.10.00, 7208.25.00, 7208.26.00, 7208.27.00, 7208.36.00, 7208.37.00, 7208.38.00, 7208.39 .00, 7208.40.00, 7208.52.908, 7208.52.908, 7208.52.10, 7208.53.10, 7208.53.90, 7208.54.00, 7211.13.00, 7211.14.00, 7211.19.00, 7212.60.00, 7225.19.10, 7225.30.10, 7225.30.30, 7225.90. .90, 7226.91.20, 7226.91.91 and 7226.91.99In March 2022, the government announced the results of the investigation after a long time for reviewing. Accordingly, HRC importers from the EU and Korea were found to be selling HRC products at a lower price than the floor price in domestic. The Turkish Ministry of Commerce has calculated that the dumping margin of Korean importers ranges from 14 to 18.6%, especially for European HRC steel importers who have been accused of dumping with a margin of high in the range of 23-49%.On July 7, 2022, in the face of arguments about unfair competition, the Turkish Ministry of Commerce decided to impose an anti-dumping duty on importers from the EU and Korea. The tax rate will be calculated in the range of 7-18.8% for HRC products from Europe and 7-8.95% for HRC products originating from Korea.What is the cause of escalating tension? "What we have been doing is a proper answer for the EU after everything they have done to Turkey in the past four years," the Turkish Steel Association vice president declared.In addition, he also said that the imposition of the tax would be an essential step to prevent unfair trade between domestic and foreign manufacturers.Turkey is one of the largest export markets for the EU, and they often look to this country as a solution to eliminating the inventory situation when the demand for steel in the European region is significantly reduced. EU producers have been accused of regularly selling large shipments of steel to Turkish users at lower prices than the prices in Europe, specifically a large factory in France sold steel in Turkey for about 鈧�750/ton, while the domestic price is much more expensive with a specific price above 鈧�900/tons.Although the imposition of an anti-dumping tax has the participation of the EU and South Korea, this is actually seen as a response from the Turkish manufacturers to the EU since the case of anti-dumping duties on HRC products from Turkey in January 2021.Vietnam's Perspective Before Recent Anti-Dumping LawsuitsAs of 2023, Turkey will always be a potential steel export market for Vietnamese suppliers. The trading relationships become significant in the context of steel demand in Turkey increasing sharply to serve the reconstruction of construction structures after the earthquake in January.Although Turkey has previously initiated an anti-dumping investigation on stainless steel pipes from Vietnam, the Turkish Ministry of Industry and Trade has not yet made a final decision on this matter. It can be seen that commercial cooperation between the two countries has always maintained a stable status based on bilateral interests.Particularly for HRC products, Vietnam is considered one of the most potent steel manufacturers with annual output of HRC steel reaching more than 8.6 million tons. Thanks to strong production capacity and technological advances, Vietnam has been able to supply and export HRC worldwide. In just 6 months of 2021, Vietnam's HRC export volume has reached 700,000 tons. 

Trade remedies take place as an apparent trend in the integration process of the global economy. Therefore, it is not surprising that anti-dumping cases are escalating gradually and most recently, the EU imposed anti-dumping duties on Turkish steel products.Overall the evolution of the EU imposed anti-dumping duty on Turkish steelOn August 12, 2022, the European Commission announced the decision to impose anti-dumping duties on galvanized steel products from Turkey. According to information from the commission, an investigation into trade remedies evidence has been started from January 2020 until December 2020 after the request from the European Steel Association (EUROFER). The products under investigation include hot-dip galvanized steel and galvalume steel in both coil and flat forms.After many preliminary investigations, the European Union decided to impose anti-dumping duties ranging from 8% to 11% on galvanized steel products imported from Turkey. The tax rate will be applied depending on the different manufacturing plants for 5 years.Analyze some causes of the lawsuit from the EUExplaining the reason for the incident, the European said that the import price of galvanized steel from Turkey has decreased significantly and it has a significant difference when compared to the price of the steel manufacturers in the EU from 2018. By the end of 2020, the price of Turkish steel will have decreased by half compared to the price of steel from Europe. This evidence is enough for the European Union to conclude that Turkish steel products have been dumped at 2.4 - 39.8%.For a long time, the EU market has always been an important export market for Turkey. By 2021, Turkey's total export of galvanized steel has reached 1.6 million tons, equivalent to a value of 2 billion USD. Along with that, Europe's steel consumption volume reached a stable level from 2017 to 2019 but then decreased by 10% in 2020, the cause partly due to pressure from steel imported from Turkey.The EU's decision to apply an anti-dumping policy is seen as a negative effect on Turkish exporters, but it helps European factories reduce price pressure among a series of international exporters. As a result, EU producers can implement a strategy to stabilize prices as well as reduce rivalry from competitors.Some reactions from Turkey importers face to anti-dumping dutyBefore the results of the anti-dumping duties, the Turkish Steel Exporters Association had fierce controversies. Accordingly, the Turkey side declared that the price of galvanized steel was directly affected by the previous price fluctuation of HRC. However, the EU side rejected this claim.In addition, the European Union also rejected some opinions that the cause of their steel output decline was mainly due to weak demand. Some experts believe that European manufacturers have invested in inappropriate strategies during and after the Covid pandemic has caused operating capacity to exceed consumption, leading to substantial losses which adversely affect profits.鈥淥ur export situation will be aggravated by these decisions, there is a high rate of possibility that we will lose in the competitive position compared to India, Korea, and Vietnam,鈥� said the Export Association. Turkish Steel (CIB) commented. Vietnam's perspective on Turkey's anti-dumping dutyWhen faced with the anti-dumping tax case from Turkey, Vietnam expressed severe concern about the anti-dumping issue as a steel exporter. Vietnam and Turkey both have similarities in the export market while the EU market has always been one of the four largest markets for Vietnam's galvanized steel industry.Currently, Vietnam is considered one of the countries with rapid growth in export turnover when many of Vietnam's export products, including galvanized steel, certainly create competitive pressure on domestic markets. This development causes many countries to pay attention including the European Union. Therefore, the galvanized steel industry is predicted to be no exception to this inevitable trend with a high probability of imposed trade remedies tax policies in the future.Although Vietnam's galvanized steel has not yet been subject to trade remedy lawsuits when exporting to the European market, it will be limited in quantity instead. Specifically, on 1st July 2022, Vietnam's galvanized steel exports will be managed under a quota of 1.8 million tons. If the export volume in the year exceeds the quota, the import tax will have to pay an additional 25%.In the worries about anticipating trade remedies from Europe in the future, the European market has always been a potential export land for Vietnamese steel manufacturers. Because it has only 3 of a total of 23 products subject to quotas including cold rolled steel, galvanized steel, and stainless steel. The remaining 20 types of steel products temporarily do not apply to quotas and are not subject to additional tax rates. 

The sharp drop in input material prices and abundant supply is why manufacturers lower the costs of construction steel products to stimulate demand. This is also the lowest price drop in the past two months in the Vietnamese steel market.From the beginning of the year until now, the price of construction steel in the Vietnamese market has continuously decreased sharply. Specifically, the price has dropped by 200,000 VND/ton (equivalent to 8.50 USD/ton), the 10th decline in a row. Construction steel costs around 14.5 million VND/ton to 15.5 million VND/ton (depending on product and brand). This price level is equivalent to the steel price in October 2022 - when the steel demand begins to decline sharply.Companies such as Hoa Phat, Viet Y, Viet Duc, and Viet Nhat have reduced the prices of their products since the beginning of April, with a cumulative reduction of up to 1.5 million VND/ton.The Vietnam Steel Association believes the recent decline in domestic construction steel prices is due to weak demand and lower input material costs. However, the price reduction has also boosted demand for the production and consumption of steel products in the last 2 months. Specifically, in May, there were 812,000 tons of construction steel produced, up 14% from April. Steel consumption also reached 927,000 tons, up by more than 26%; this is the highest growth rate since the beginning of this year. This is the second month in a row that steel consumption exceeds production. The difference between consumption and steel production is more than five times higher than last month, reaching more than 115,000 tons. This shows that market demand is gradually recovering.In the first 5 months of 2023, Vietnam's steel industry was continuously under pressure from falling domestic market demand and export pressure from steel-exporting countries to Vietnam. With the price reduction rate to compete, it is forecasted that steel prices will continue to decrease in the coming time.In the Vietnamese market, Hoa Phat Group is the leading wing of the steel industry, accounting for 34% of the construction steel market share. Mr. Tran Dinh Long - Chairman of the Board of Hoa Phat Group, said that the most challenging period of the steel industry has passed. Specifically, Hoa Phat sold more than 530,000 tons of all kinds to the market in May alone, up 16% from April. In which construction steel sold 284,000 tons, up 33%.With the recent sharp drop in steel prices, Vietnamese enterprises have promoted exports to reduce excess products. As a golden time in terms of prices, the cost will be optimized if importers proceed to import steel from Vietnam. Famous for quality steel manufacturers such as Hoa Phat, Nam Kim, Hoa Sen, Dong A... These will be the suppliers of construction steel products with international quality and reasonable prices. Above is information about construction steel prices in the Vietnam market; the price list will continue to be updated. If you want a specific quote, please get in touch with us. 

Although 2023 is a year with many difficulties and challenges, the steel industry in Vietnam still has optimistic signals and is likely to recover by the end of the year.Steel industry growth in Vietnam 2023 According to the Vietnam Steel Association (VSA), in the first quarter of 2023, the steel industry produced 6.692 million tons of finished steel products, down 20.9%; finished steel consumption will reach 6,068 million tons, down 25.4% compared to the first quarter of 2022.In the first two months of 2023, Vietnam鈥檚 steel industry exported about 1.425 million tons of steel, up 6.85% over the same period in 2022. Export value reached 1.031 billion USD, down 26.73% over the same period last year. Vietnam's steel export market share in the first 2 months of 2023 in the markets of ASEAN (37,31%), the EU (20%), India (9,34%), Turkey (7,32%), the US (6,39%), and other (19,64%).Vietnam's steel export market share in the first quarter of 2023The steel industry has gone through the most challenging period and is on the path to recovery. However, VSA still believes that Vietnam's steel industry faces many difficulties and challenges that may last until the second quarter of 2023. However, Vietnamese steel enterprises still try to invest and seek new orders to recover previously affected business results. For example, in early 2023, Hoa Phat will record many export orders to markets in the Americas, Asia, and Australia. Steel export volume (steel bar, construction coil, and high-quality coil) in January 2023 will reach 46,000 tons.The bright spot for the steel industry at the end of 2023Despite being forecast with many difficulties and challenges, steel industry enterprises still have many growth drivers visible in 2023.According to the World Steel Association (WSA), world steel demand will increase by about 1%, with the ASEAN region leading the growth in steel consumption thanks to a substantial investment orientation in infrastructure. This is expected to be the main export market for Vietnam in the near future. In addition, the demand in the domestic civil construction sector will significantly impact the demand for steel. In 2023, the Vietnamese government increased the disbursement of public investment capital in key projects such as the North-South expressway, Long Thanh Airport, and major logistics ports. In addition, the government has also approved credit packages for social housing projects. The focus on promoting the development of construction projects will stimulate demand for the steel industry to prosper at the end of the year.Besides, there are positive signals from the export market when the world's largest steel industry - China- stabilizes and promotes investment to boost the economy. The country has rolled out a series of stimulus policies, especially in the real estate market, to support an economy that is already constrained by strict measures to contain COVID-19 for most of 2022. This is also a potential steel industry market where Vietnam can boost steel exports in the near future.Energy shortage in Europe due to Russia's minimizing gas supplies to this region. The reduction of energy causes a number of energy-intensive industries to reduce productivity and output, including steel production. This creates opportunities for Vietnam's steel industry to boost exports to this market.

The World Steel Association has released its short-range outlook for steel demand (SRO) forecast for 2023 and 2024. Accordingly, in 2023, the demand for recovery in the steel industry will be 2.3%, and in 2024, it will be 1.7%.Overview of the world steel industry2022 has been a challenging year for the steel industry worldwide as it has been affected by the Russia-Ukraine war, high inflation and rising interest rates, and China lockdowns due to the heavy impact of COVID-19.These events have a massive impact on the steel industry as rising energy prices cause manufacturing industries to reduce output, causing disruptions to the global steel supply chain.The above impacts, along with China's being affected by COVID-19, will limit the recovery of steel demand in 2023. In 2024, the growth of the steel industry will be impacted by countries with developing economies.China - The world's leading steel industryDue to the impact of the epidemic, in 2021 and 2022, China's steel demand fell sharply. For the first time in 25 years, China's real estate projects are in negative territory. This decline will seriously impact the steel industry and construction activities in 2023鈥�2024.In 2022, China's steel exports were relatively good, but production activity was weak. 2023鈥�2024, the steel industry manufacturing sector is expected to recover. After falling 3.5% in 2022, China's total steel demand is expected to grow 2.0% in 2023; it is not expected to change in 2024.Developed economiesIn 2022, developed countries will have strongly recovered from the COVID-19 pandemic. Steel demand in these countries fell sharply due to reduced construction activity and infrastructure investment, inflation, rising energy costs, and the effects of the war between Russia and Ukraine, especially in the EU and the US. The prospect of steel industry growth in 2023 is not favorable when it is still affected by the war between Russia and Ukraine, and the EU is the directly affected area. Steel demand in developed countries is expected to grow by 1.3% in 2023 and recover 3.2% in 2024 after falling 7.9% in 2022.Developing economiesIn developing countries, the resilience of the steel industry is more challenged as rising inflation impacts the monetary tightening cycle. In the coming years, the economies of developing countries will face challenges from external factors such as the Russia-Ukraine war and US monetary tightening. Despite many difficulties, the steel industry of emerging countries is still recovering under the influence of the government. After falling by 0.3% in 2022, steel demand in emerging economies will grow by 3.6% in 2023 and 3.9% in 2024.Vietnam is one of the countries with a developing economy. Under the influence of the government, Vietnam's steel industry gradually recovered after a series of days affected by COVID-19. Promoting investment in critical projects in the country is one of the bright spots for recovering the country's steel industry. Vietnamese steel enterprises also boosted their exports to potential markets to bring in foreign currency revenue and recover the steel market.

On June 2, 2023, the Safeguards Committee of the World Trade Organization (WTO) announced that the European Union would continue to extend safeguard measures in the form of tariff quotas (TRQs) for some steel products imported from Vietnam for an additional year. The EU decision is in effect from July 1, 2023, to the end of June 2024.According to the notice of the WTO, the European Union accused cheap steel products imported from abroad will continue to cause severe damage to domestic producers. Therefore, they asked to apply trade remedies because the EU's domestic steel industry has taken many measures to deal with the increase in imported steel products into the domestic market.Based on the Commission's Implementation Regulation 2021/10291, the EU issued a Decision to extend safeguard measures applied to imported steel products through tariff quotas. Accordingly, the European Commission allocates specific and common quotas for each country for the remaining countries. Imports over the percentage are subject to an additional 25% duty.Vietnam, along with other countries, has exported steel to the EU market subject to quarterly tariff quotas for eight types of steel, including hot rolled steel plate (group 1), electrical engineering steel plate (group 3B), galvanized steel plate (group 4A, 4B), organic coated steel plate (group 5), stainless cold-rolled steel plate (group 9), large steel pipes (group 25B) and other steel pipes (group 26). For other groups of steel products, Vietnam is exempted from safeguard measures according to the criterion that a developing country with a steel import market share of less than 3%.  The European Union is one of the regions that regularly applies trade remedies to imported goods globally. According to WTO statistics, by the end of June 2022, the EU had investigated 644 cases and applied 408 trade remedies. Currently, the EU only uses safeguard measures related to steel products for Vietnam. In the next stage, Vietnamese manufacturers need to contact EU and Vietnamese authorities to fulfill their obligations to declare, cooperate and provide sufficient information to protect their rights tariff rate, not allowing steel products outside the above eight groups to be determined to exceed 3% of the market share.Previously, on March 26, 2017, the European Union launched an investigation into some imported steel products. On July 18, 2018, the EU decided to apply a temporary safeguard measure on steel products classified under 23 product categories within 200 days. The out-of-quota tariff rate is 25%, depending on product type and origin.On July 1, 2020, the non-taxable quota was increased by 5%, effective until June 30, 2021. With the expiry of the term three years, the EU relaxed this measure by increasing the tariff rate quotas for all groups to 4% from July 1, 2021, to June 30, 2023. On February 2, 2019, the European Commission imposed official safeguard measures on 26 out of 28 product categories under investigation. Before exporting to the EU, the Vietnam Trade Remedies Administration suggested that enterprises actively control the export shipments within the remaining quota.If customers want to learn about the Vietnam steel market and import genuine steel products, please get in touch with AG真人游戏 Steel via Whatsapp: +84 76 911 2358 for the best support. 

ArcelorMittal Kryvyi Rih recently halted its steelmaking and rolling operations due to water impacts following a dam failure at the Kakhovska Hydropower Plant. The production halt could affect Ukraine's steel industry in the near term. ArcelorMittal Kryvyi Rih has halted productionUkrainian steel and long steel producer ArcelorMittal Kryvyi Rih recently halted steel production and rolling activities. According to reports, the halt stemmed from the dam collapse at the Kakhovka Hydropower Plant due to suspected Russian influences. So far, no results have determined whether the production halt will affect Ukraine's steel industry prices.The plant has stopped production since June 6 and will resume operations if the water in Lake Kakhovka shows signs of decreasing. Meanwhile, blast furnaces, coke smelters, and iron ore mining operations continue to operate. The source also said that the business continues to deliver goods on schedule.The steel industry may be affected in the near futureThe dam is located on the Dnipro River in Ukraine's Kherson region. ArcelorMittal Kryvyi Rih steel mills use Lake Kakhovka's water during steelmaking and cooling. The dam collapse seriously impacted the downstream region and significantly affected steel production. However, there is no information shared about the amount of water that ArcelorMittal Kryvyi Rih consumes, but certainly, the amount of water consumed by the steel industry is not a small number. On June 7, ArcelorMittal Kryvyi Rih announced that there would be no water supply for production on June 8, forcing employees to work from home or take unpaid leave. The plant also said it would update the water supply situation daily to ensure operations could still occur.In the first 4 months of 2023, Ukraine's crude steel production decreased by 54% compared to last year. According to a report from the local steelmaking association, Ukr Metalur Prom, steel production fell from 3.93 million metric tons to nearly 1.81 million metric tons. With such a sharp decrease in steel output, the industry may increase prices soon.What opportunities exist for Vietnam's steel industry?ArcelorMittal Kryvyi Rih is stopping production due to the impact on the water supply after the dam collapse at the Kakhovska Hydropower Plant. The production stoppage means that the steel price in this market will increase. This is an opportunity for Vietnam's steel industry to export products to this potential market. With international-standard quality and a reasonable cost, Vietnamese steel will be a reasonable source for the Ukrainian steel market. Besides, the Ukrainian steel market was also affected by the Russia-Ukraine war. Several leading steel producers in Ukraine have plans to cut production output to a minimum due to delayed rail and port operations. This will create opportunities for the steel industry in other markets, typically Nam Kim, Hoa Sen, Hoa Phat, and Ton Dong A... with revenue growth mainly coming from exports to the EU market.Above is information about ArcelorMittal Kryvyi Rih's production cuts due to the impact of the dam failure at the Kakhovka Hydropower Plant. The dam's collapse led to decreased steel output, which is also an opportunity for the Vietnamese steel industry to export steel to this market. If you need to buy Vietnamese steel, please contact us here. We ensure that we provide quality steel products at a reasonable cost. 

As part of its sustainable development plan, the World Steel Association organizes 2 significant events: "Open Forum 2023" and "Disruptive Technology Conference 2023". This will allow the steel industry to develop and strengthen its position on the economic map.1. Steel industry overview 2022In 2022, the global economy will face difficulties when inflation increases and steel-using industries grow slowly. Meanwhile, the high price of input materials in the steel industry increases production costs and decreases steel demand. Some major steel corporations worldwide have plans to close blast furnaces, such as ArcelorMittal.2022 global steel production will reach 1,878 billion tons, up slightly from 1,875 billion tons in 2019 (before the COVID-19 pandemic). China leads the world in steel production with 1,013 million tons, accounting for 54% of total output. China is followed by India with 124.8 million metric tons, accounting for 6.6% of the world. These two countries have a developed steel industry, contributing to the overall development of the world steel industry.Worldsteel forecasts that steel demand will decline 2.3% in 2022 to reach 1,796.7 billion tons after increasing 2.8% in 2021. In 2023, steel demand will recover by 1% to 1,814 billion tons. 2. Sustainable development plan of the steel industryThe sustainability of the steel industry is always a top priority for the World Steel Association. As part of the series of sustainable development plans for the steel industry, the World Steel Association organized two significant events: the "Open Forum 2023," held in Belgium, and the Breakthrough Technology Conference 2023 held in the UAE.2.1 Open Forum 2023After successfully holding the event in 2022, the 2nd Open Forum in 2023 is an opportunity to expand and develop the steel industry. The forum aims to engage stakeholders in the steelmaking ecosystem, including suppliers, equipment manufacturers, and related industries.The forum focuses mainly on climate policy implementation, transition financing, raw material requirements, energy availability, steel-using industries, and chain of custody. Development of steel products.2.2 Breakthrough Technology Conference 2023This event is organized to facilitate exchanges between researchers and engineers working in steel. The conference will be a networking platform to participate and share information and knowledge about the steel industry.The main content of the conference revolved around the production and transformation ecosystem. Includes hydrogen use (reduction, BF pumping, heating), CCUS, use of alternative carbon sources, electrification (EAF, electrolysis, heating), scrap, efficiency, and other cross-cutting issues.3. Vietnam and opportunities before the sustainable development of the steel industryThe world steel industry is growing, leading to the development of Vietnam's steel industry. With the new development trend of the world economy, the development potential of Vietnam's steel industry in the future is huge.Production capacity: Over the past time, Vietnam's steel industry has developed enormously in both production capacity and product categories. The steel industry's growth in recent years has doubled, with total production reaching around 29.3 million metric tons in 2022. With these factors, Vietnam has risen to 13th in steel output, with 20 million tons in 2022, accounting for 1.1%.Export market: Vietnam's steel products have been exported to more than 30 markets worldwide. Vietnam's main steel export markets are ASEAN countries, accounting for 26.2% of the total turnover; the EU accounts for 15.98%; China accounts for 14.12%; the US accounts for 11.57%,... Besides, the signing of a number of new-generation FTAs, such as CPTPP, EVFTA, and RCEP... has brought positive signals to the steel industry when there are new export markets with high scale and growth potential.Above is information about the sustainable development plan of the steel industry; if you want more details, please contact us here.  

Russia and Ukraine are accusing each other of the collapse of the Nova Kakhovka hydroelectric dam in the Kherson region at dawn on June 6, causing widespread flooding and threatening thousands of people living there. Sources said the blowing up of the hydroelectric power plant severely impacted steel production in Kryvyi, where AecelorMittal's Ukraine steel mill is located. Should the EU's steel market import Vietnamese products to solve the supply shortage?1. Russia and Ukraine accuse each other of the hydroelectric dam in KhersonAccording to Russia's media, the Ukrainian military carried out an airstrike on the Kakhovka hydroelectric power station with the Olkha multiple rocket launcher system. Russian Defense Minister Sergei Shoigu also accused the Ukrainians of attacking the hydroelectric dam in Kherson to hinder the advance of the Russian army.The 30m high, 2 miles (3.2km) long dam was built in 1956 on the Dnipro River as part of the Kakhovka hydroelectric power station and included a reservoir of 18 km3 of water. It is considered the primary source of water for the Crimean peninsula, the Zaporizhzhia nuclear plant, and ArcelorMittal.Meanwhile, the Ukrainian side also accused Russian forces of blowing up the Nova Kakhovka dam, which not only caused massive flooding in dozens of villages and cities, affecting thousands of civilians but certainly also created an ecological disaster in southern Ukraine for many years. Ukrainian President Volodymyr Zelensky called the collapse of the Kakhovka dam an act of "environmental destruction" and said the incident would not affect Ukraine's plans to retake territory from Russian forces.Faced with escalating tensions, on June 6, the United Nations Secretary-General Antonio Guterres also stated, "Attacks against civilians and critical civilian infrastructure must be stopped immediately. We must act to ensure accountability and respect international humanitarian law.""We express great concern about the destruction of the dam at the Kakhovka hydroelectric power station," China's ambassador to the United Nations said. The blowing up of the hydroelectric dam on the Dnipro River not only endangers the Zaporizhzhia nuclear power plant but also disrupts the steel supply to the relevant regions.On the same day, the European Union (EU) offered to assist Ukraine in overcoming the consequences of the disaster so that people could soon return to everyday life and stabilize production.2. The world steel industry was affected after the collapse of the Kakhovka damBesides the severe damage to agricultural activities and water supply infrastructure for residents, experts are also concerned about ArcelorMittal Kryvyi Rih, as steel production mainly depends on Lake Kakhovka. According to the latest reports, Ukraine's AMKR mill has restricted water consumption and suspended some metallurgical, crude steel production. It is expected that it will take about 3-4 days to assess the damage and plan to restore average production.ArcelorMittal is one of the world's largest steel corporations, estimated to be able to produce about 6 million tons of crude steel and other products per year, such as coils, rebars, and commercial steel bars for Ukraine. Three steel producers in regions under Ukraine's control - ArcelorMittal Kryvyi Rih, Kamet Steel, and Zaporizhstal - are currently operating at an average capacity of 50-60%, producing a total of 13.5 million tonnes of steel annually. The wars and conflicts between Ukraine and Russia will inevitably increase energy costs in Europe, leaving steel mills with no choice but to increase the selling price of their products. Many customers in the European market also stopped trading with these two countries due to the sudden and out-of-control price increase. A steel mill in Central Europe complained overnight that the cost of natural gas had increased by 55%, so it was forced to cancel purchases to avoid economic damage.3. Kakhovka hydroelectric dam failure: How does it affect Vietnam's steel industry?Vietnamese steel will benefit from the EUIn the context of the crisis between Russia and Ukraine, the prices of goods and raw materials, including coking coal, have increased sharply, affecting input costs for steel production and disrupting steel supplies worldwide. Russia and Ukraine are both major steel exporters, especially in the European market (accounting for 15% of the market share), along with Ukraine and Belarus, which account for 38% of the market share of steel exports to the EU. Therefore, experts say the escalation of Russia-Ukraine and the recent blowing up of a hydroelectric dam will lead to a sharp supply shortage.However, this will create opportunities for steel exporters from other markets, including Vietnam. The sharp increase in steel prices will help countries with low steel production costs, like Vietnam.The proportion of steel exported to the EU increasedAccording to the Vietnam Steel Association (VSA) report, the EU ranked third in Vietnam's steel import volume, accounting for 13% of the proportion (equivalent to 1.6 million tons) in 2021. This figure increases by more than 10% with 2020 (2.86%). The signing of the Free Trade Agreement between Vietnam and the EU (EVFTA) helps Vietnam enjoy many incentives in terms of duty rate and 0% anti-dumping duty. This has created a good premise for the EU to boost the import of cheap and quality steel in Vietnam.Above are the latest news about the Nova Kakhovka hydroelectric dam blowing up between Russia and Ukraine and the forecasts affecting the steel industry. For any information and needs to learn about Vietnam's steel market, please get in touch with AG真人游戏 Steel via Whatsapp: +84 76 911 2358 for the best support! 

The Vietnam steel market is going through a difficult period when steel prices have been adjusted along with an decrease in demand. Specifically, SSI Research has forecast that steel industry demand in the first half of 2023 may decline in the context of a weakening real estate market and tight monetary policy of the government.1. Vietnam steel market fluctuationsAccording to the assessment from VSA, 2022 is a challenging year when the decline in the domestic consumption market has affected the price of steel, and the cost of production materials is also complicated. Those changes lead to many steel enterprises falling into predicament and loss.Specifically, Hoa Phat Group Joint Stock Company achieved a revenue of VND 142,000 billion, down 5% compared to 2021. In terms of output, Hoa Phat has supplied the market with 7.2 million tons of steel (including billet, steel) construction, hot rolled coil), the result is down 7% compared to 2021.Not only Hoa Phat faced difficulties, but also other giant enterprises in the steel industry also struggled because of declining revenue. Vietnam Steel Corporation - VNSteel recorded revenue of VND 38,732 billion, down 5% compared to the previous year of 2021.2. Main Challenges For Vietnam Steel IndustryBased on the assessment of many experts, the biggest reason for the decline comes from the large fluctuation in steel price while the consumption demand is not very positive.2.1 Impact from real estate & global inflationaryThe domestic real estate market has shown signs of weakness for a long time, it caused a heavy blow to the demand of using steel as well as prices. Domestic raw materials still cannot avoid undering the pressure from global inflation, specifically the price of petrol and raw materials such as iron and steel has increased rapidly in the Vietnam market since the recovery of the Covid pandemic.2.2 Consequence of Russia & Ukraine conflictIn addition to the above issues, indirect factors related to the conflict between Russia and Ukraine cannot be ignored. Specifically, Russia is one of the world's largest in supplying coal, the dispute between the two countries has disrupted coal supply. Coal prices have increased many times when compared to the normal level, which has led to an increase in the general price of input materials for production.Unusual disparity of Russia's coal exporting volume to the Asia countries2.3 China鈥檚 鈥淶ero-Covid鈥� Policy Affect to Vietnam Steel MarketBesides that, China's zero covid policy also affects the domestic steel industry and raw material prices. Until now, China has always been the main export market of many domestic enterprises, so the tightening policies at the border gate have delayed many carrying trade and disrupted the transport cycle between the two countries. As a result of this delay, transportation costs have increased, which has led to an increase in the prices of raw materials.3. Prospects for Vietnam Steel MarketIn the face of these factors, the Vietnam steel market will inevitably face difficulties, but potential opportunities are still open to all businesses.Although the export situation is not very positive, the import of input materials for steel production has always remained stable when it only decreased slightly by 8% when compared to the same period last year. According to the most recent statistics, Vietnam's crude steel production capacity reaches 23 million tons/year, particularly hot-rolled coil (HRC) reaches 7-8 million tons/year. Vietnamese steel enterprises, in particular Hoa Phat Group, have invested in building large iron and steel factory complexes.Vietnam's ranking on crude steel production among countriesIt can be seen that Vietnam's steel industry is gradually becoming self-sufficient in input steel materials and they are not much dependent on foreign countries. The Vietnam steel market has had a strong development in steel production capacity and technology in recent years.Moreover, experts of finance show high expectations on the recovery of steel prices in 2023. The driving force of this expectation mainly comes from China's stimulus policy of the real estate market. This policy of China will dismantle difficulties for many businesses in the Vietnam steel market because China has always been an important export market for Vietnam.