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Russian galvanized steel has created tremendous competitive pressure in the European market. This forces the EU to apply trade remedies to ensure the development of the European Union bloc.Russia is hit with anti-dumping duties by the EURussia is the world's 3rd largest steel exporter, with annual steel exports reaching 28 million tons. In the Europe market, Russia is currently the second-largest supplier of steel to Europe after Turkey. The excessive export of galvanized steel to Europe is said to be the act of destroying competitors and expanding the market, which is an act of unfair competition and should be prevented. There have been lawsuits alleging that galvanized steel products are dumped from Russia on the European market, affecting the region's steel market economy.The European Steel Industry Association (Eurofer) initiated the investigation after receiving a report from Commodity Insights. According to the lawsuit, Europe's average galvanized steel production remained stable from 2017 to 2019, but prices remained higher than those imported from Russia. However, in the period from 2019 to 2020, EU steel production decreased by 10%, mainly due to the impact of cheap Russian steel flooding the European market. This makes the EU steel market volatile, and domestic steel enterprises suffer a decline in output and revenue.From January to December 2020, the EC opened an investigation into the imports of galvanized steel products from Russia into EU countries to determine whether these products are being dumped and whether such imports cause harm or damage to EU domestic steel producers. The products investigated fall under HS codes 7210410020, 7210410030, 7210490020, 7210490030, 7210610020, 7210610030, 7210690020, 7210690030, 7210908092, 7212300020, 7212300030, 7212506120, 7212506130, 7212506920, 7212506930, 7212509014, 7212509092, 7225920020, 7225920030, 7225990022, 7225990023, 7225990041, 7225990092, 7225990093, 7226993010, 7226993030, 7226997013, 7226997093 và 7226997094.The EC determined that Russian galvanized steel products had a dumping margin of between 2.4% and 39.8%. The fact that galvanized steel products are imported from Russia and dumped in the EU market makes domestic manufacturers unable to sell their products, putting pressure on the national economy.Accordingly, on August 12, 2022, the EU imposed an anti-dumping order on galvanized steel products from Russia after concluding this investigation. The EU imposed anti-dumping orders on galvanized steel products originating from Russia after the conclusion of this investigation. Russian steel mills will be subject to specific duties, as follows: Anti-dumping duties on steel from Magnitogorsk Metallurgical Plant amounted to 36.6%, Novolipetsk Metallurgical Plant to 10.3%, Severstal to 31.3%, and other Russian enterprises to 37.4%.Vietnam - An alternative to RussiaMost EU countries import steel from Russia, EU anti-dumping duties on Russian galvanized steel disrupted the EU steel market, affecting supply in other industries. The EU and Vietnam share the same EVFTA trade agreement, which is an opportunity for EU countries when importing steel from Vietnam. The joint trade agreement helps EU countries avoid being subject to import duties when importing galvanized steel originating from Vietnam. This helps countries in the EU import quality steel at a more reasonable cost than importing steel from other countries.As one of the significant steel exporters in the world today, the prolonged conflict between Russia and Ukraine directly affects global raw material resources, including the steel industry. The shortage of steel supply from Russia will cause steel prices in Europe to rise, especially as many steelmakers in Europe have had to reduce capacity because of soaring energy costs. This is also a condition for Vietnamese steel enterprises such as Hoa Sen Group, Hoa Phat Group, Nam Kim Steel... boost the export of galvanized steel to this potential market, replacing the gap left by Russia. 

On March 1, 2023, the UK’s Trade Remedies Authority announced the extension of anti-dumping measures on High Fatigue Performance Steel Concrete Reinforcement Bars (HFP) imported from China. This makes domestic businesses concerned about the disruption of the supply of good-priced steel.1. The UK: Applying anti-dumping duty on rebar imported from ChinaHFP rebar, also known when massed as reinforcing steel or reinforcement steel, is a major material in the construction industry with a high bearing capacity to reinforce steel structures. The use of HFP Rebar in construction has brought a value of more than £108 billion to the UK economy.During the period from April 1, 2020, to March 31, 2021, the UK imported 3,600 tons of rebar from China. In the long run, the government was worried about dumping that could cause the domestic steel industry to suffer significantly because of cheap supply.Therefore, the European Commission imposed anti-dumping duties on HFP bar steel under the HS code 72 14 20 00 10, 72 28 30 20 10, 72 28 30 41 10, 72 28 30 49 10, 72 28 30 61 10, 72 28 30 69 10, 72 28 30 70 10 and 72 28 30 89 10 imported from China. Those trade remedy measures were in effect from July 2016 to the end of July 29, 2021, without needing to be reviewed.2. The UK: Proposal to extend trade remedies with rebar imported from ChinaThe UK's Trade Remedies Authority (TRA) proposed to continue to extend the anti-dumping duty at 18.4-22.5% for HFP rebar imported from China. Faced with the tense war situation of Russia-Ukraine, the British government is also concerned about negative impacts on the steel industry and causing a shortage of rebar. Therefore, continuing to extend trade remedies with this product might affect the general economic interests of the country.However, after reviewing the feedback from stakeholders and new economic forecasts, TRA found that steel imports from Russia, Ukraine, and Belarus could be substituted from other countries such as Portugal, Spain, and Turkey. Therefore, the extension of anti-dumping duty did not disrupt the domestic steel supply. The relevant parties had requested until the end of October 14, 2022, before the Ministry of International Trade made a final decision.3. The UK: Continue to extend anti-dumping measures with rebar imported from ChinaOn March 1, 2023, the United Kingdom officially extended anti-dumping measures on construction rebar (HFP) imported from China. This decision was made after the Trade Remedies Authority (TRA) conducted a review of the petitions to cancel the trade remedy measures applied since 2016.According to Minister for Business and Trade - Nigel Huddleston, protecting domestic steel producers from unfair competition is a top priority for the government. Thus, the anti-dumping duty on Chinese rebar will be in effect until the end of July 2026.4. The UK: Vietnam's important steel export marketAccording to WTO statistics, by the end of June 2022, the UK has investigated a total of 04 trade remedies and applied 1 measure (transitional safeguard mechanism with steel products).According to the EU �� UK Withdrawal Agreement, from January 1, 2021, the UK is no longer a member of the EU, and safeguard measures on steel products are carried out independently between the EU and the UK. After this event, both the UK and the EU conducted a review and updated the trade protectionism being applied.For Vietnam, the UK is currently only applying safeguard measures for steel products. In March 2022, The Trade Remedies Authority initiated an investigation and review of safeguard measures with steel products. In June 2022, they issued a final report, according to which Vietnam applied a separate tariff rate quota on a quarterly basis and a residual tariff quota for some steel products from July 1, 2022, to June 30, 2024.Thanks to the UKVFTA Free Trade Agreements, Vietnamese businesses have an edge over many other countries. According to data from Vietnam Customs, two-way trade turnover between Vietnam and the UK will reach nearly 6.84 billion USD in 2022, up 3.4% compared to 2021. Exports will reach 6.07 billion USD, up 5.2%, exports of iron and steel of all kinds to the UK reached 155.7 million USD, and products from iron and steel reached 63.3 million USD.Hopefully, the information about the UK's extension of anti-dumping duty on Chinese steel will help you update more about the world's steel market situation. Don't forget to follow and read the latest news about the steel industry in Vietnam and the world at AG������Ϸ Steel! 

The Department of Foreign Trade of Thailand (DFT) has just issued the final conclusion in the final review of the anti-dumping duties order on steel products originating from Vietnam. Accordingly, DFT has stopped the order to impose anti-dumping duties on GL and extended the duty imposition on PPGI and PPGL.The Trade Remedies Department said it had received information that DFT has initiated an investigation and review at the end of the anti-dumping duties period with two product lines, GL and PPGI/PPGL of Vietnam. After these two product lines were investigated and anti-dumping orders were imposed five years ago.In the case of GL, the list of Vietnamese manufacturers and exporters named includes: Hoa Sen Group Joint Stock Company, Nam Kim Steel Joint Stock Company, Member of Hoa Phat Group Joint Stock Company, Dong A Steel Joint Stock Company, Dai Thien Loc Joint Stock Company, Vnsteel Thang Long Coated Sheets Joint Stock Company, Maruichi Sun Steel Joint Stock Company, NS BlueScope Vietnam Co., Ltd., and Southern Steel One Member Co., Ltd.In the case of PPGI and PPGL, the list of Vietnamese manufacturers and exporters subject to anti-dumping investigations includes Hoa Sen Group Joint Stock Company, Nam Kim Steel Joint Stock Company, Hoa Phat Steel Sheet One Member Limited Liability Company, Dong A Steel Joint Stock Company, Dai Thien Loc Joint Stock Company, Thang Long Vnsteel Coated Steel Joint Stock Company, Maruichi Sun Steel Joint Stock Company, NS Company Limited BlueScope Vietnam, Southern Steel One Member Limited Liability Company, and Fujiton Color Coated Steel Joint Stock Company.Specifically, the Trade Remedies Department (Ministry of Industry and Trade) said that this case, announced by DFT, will initiate an investigation and review at the end of the period on March 31, 2022. The purpose is to consider whether to continue or not to continue to impose anti-dumping orders on two product lines: GL and PPGI/PPGL of Vietnam. DFT sent the questionnaire and requested that relevant Vietnamese manufacturers and exporters submit their responses before 16:30 on May 2, 2022 (Bangkok time).In order to ensure its interests, the Trade Remedies Department recommends that relevant organizations coordinate and provide information at the request of the DFT. At the same time, keep in touch with the Trade Remedies Department for timely support.It is known that in the past, on September 18, 2015, DFT also initiated an anti-dumping investigation of Vietnam's GL and PPGI/PPGL. On March 25, 2017, DFT issued a final decision to apply anti-dumping duties from 4.3% to 60.26% for GL and from 6.2% to 40.49% for PPGI and PPGL imported from Vietnam. The duty rate will be effective for 5 years from the date of issuance.After the investigation process, on June 7, 2023, the Trade Remedies Department received the final conclusion in this case. Specifically, GL, after the investigation process, DFT decided to terminate the order to impose anti-dumping duties on this product (including 39 HS codes listed under the HS code list of Thai Customs). For PPGI and PPGL, DFT decided to extend the anti-dumping duties from 4.3% to 60.26% (including 39 HS codes listed under the HS code list of Thai Customs). This duty rate will continue to be applied for the next 5 years to prevent the dumping of the above steel products in the domestic market of Thailand, causing serious injury or damage to the domestic industry of this country.    

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. 

What is CO/MTC? You have heard a lot about CO and MTC in contracts for the sale of goods, but do you really understand these two types of certification? This article by AG������Ϸ Steel will help you better understand CO/MTC and its effects on commodity trading.1. What is CO/MTC?CO (Certificate of Origin) is a certificate of origin indicating the origin of goods produced in a particular territory or country. Therefore, the purpose of CO is to prove that goods have an explicit and lawful origin in terms of tariffs and other law provisions on import and export.MTC (Mill Test Certificate) is a factory test certificate or factory test report issued by a manufacturer to certify a product's chemical and mechanical properties of a product and its compliance with standards and regulations, and current specifications.The ownership of CO/MTC is a very important and popular certification in the steel industry. Thanks to them, customers can prove the product's origin, which country standard the product is manufactured under, and whether the products conform to the standard so they can make the right choices for their projects.2. The role of CO/MTC2.1. CO (Certificate of Origin)The most crucial role of the CO is to certify the origin of the goods. This can help the manufacturer prove the product has a clear origin.Trade statistics and maintaining quota systems: Once the origin is established, it will be easier to make trade statistics for a country so that the trading agency can maintain statistics on import and export quotas. goods importAnti-dumping duties and subsidies will become more feasible if the product's origin is known. This lets the importer know whether the goods are entitled to special incentives.2.2. MTC (Mill Test Certificate)One of the most critical roles of the MTC is to demonstrate that products conform to published standards. The MTC is a quality assurance document sent from factories to their customers. These certificates describe the product's alloy, temperature, thickness, width, finish, and, more importantly, whether the metal product complies with international standards. Most MTC certifications must conform to the EN 10204 standard.Mill Test Certificate issued by manufacturer Ton Dong A3. Why does the steel business need a CO/MTC?CO/MTC is very necessary for each business unit; it is not only a condition for enterprises to export steel to foreign countries, but it is also proof to prove that steel products meet and meet quality standards.- Create trust for customers: The fact that a steel business enterprise has full CO/MTC documents will ensure product quality regulations, prove that it is not a fake, and prove that the unit is not a fake. The manufacturer is responsible for the quality of such goods.- It is a necessary condition to export steel: To export steel to other regions, it is necessary to first have sufficient certifications to decide whether the goods are qualified for import and export.- Enjoy special preferences: CO/MTC will determine the origin of goods, from which preferential tax will be applied where that country has joined pre-agreed trade agreements. It is also a document for the application of subsidies and anti-dumping laws. CO certification as a basis for planning how anti-dumping and countervailing laws are enforced.4. Vietnamese steel is fully certified for CO/MTCSteel products originating from Vietnam all have full CO/MTC certification. The fact that all Vietnamese products have CO and MTC helps Vietnamese steel gain a foothold in the world steel market. Vietnam is always committed to bringing high-quality steel products with the desire to bring sustainability to your work.In order to receive CO/MTC certification, Vietnamese steel enterprises always focus on investing in modern machinery and equipment lines, regularly upgrading and improving the system. CO/MTC is a standard measure for products with the same design and function from competing manufacturers in the market. Based on this, consumers can compare and choose according to their needs. 

According to a preliminary report, India's steel imports from Vietnam have increased more than 4 times in the fiscal year 2022/2023, mainly hot rolled coil and galvanized steel. India also switched from a net exporter to a net importer of steel in the fiscal year 2022/2023 (March 2022 �� March 2023). India's steel demand is forecast to reach 11.3% in FY 2023 and keep on taking off in FY 2024. Vietnam is taking advantage of this great opportunity to boost steel exports to India.1. India: Steel imports from Vietnam increased 4 timesIndia imported 5.59 million tons of finished steel products from April 2021 to February 2022, up 29.5% over the same period fiscal year 2021/2022. In which, hot rolled coil/strip was imported the most, accounting for 35% of total steel imports with 1.96 million tons. According to preliminary data of JPC, Vietnam is in the top 5 largest steel exporters to the Indian market, reaching 0.286 million tons, up more than 4 times over the same period in the financial year 2021/2022. The main product imported is hot rolled steel coil/strip (0.177 million tons). Moreover, the majority of India's imported galvanized sheet/corrugated iron also comes from Vietnam.The reason for the significant increase in steel imports by India from Korea, Japan, Russia and Vietnam lately is due to the price of imported steel being much lower than that of domestic steel. Accordingly, the price of imported HRC steel for delivery at Mumbai port in February 2023 was at $596/ton. While the price of HRC steel of domestic manufacturers is 730 USD/ton.2. India: 2024 steel demand forecasted to increase by 7-8%In fiscal year 2022, India's steel demand increased by 11.5%. According to the well-known ICRA financial consulting firm, the country's demand for steel will continue to rise to 11.3% in the fiscal year 2023. This is a sign that the Indian government is accelerating the development of infrastructure facilities for economic growth. IARC also said that the Indian government is willing to increase investment spending by 37% compared to 2023. The country's steel demand in the financial year 2024 is expected to reach about 7-8% (instead of 6 - 7% compared to previous forecast).The global steel price is likely to recover and remain more stable starting this year, according to the financial director of Tata Steel - the world's top 10 largest steel companies in 2022. It is forecasted that steel consumption in the Indian domestic market will increase again in the context of China reopening its economy, the European market gradually becoming more stable after more than a year of conflict between Russia and Ukraine and the America domestic market gradually improving.India becomes a potential steel consumption market for Vietnamese steel and steel businesses as demand for steel continues to rise strongly. According to the latest data of the Vietnam Steel Association (VSA), India is currently the 3rd largest steel importer of Vietnam (accounting for 15% of total exports),  just behind ASEAN 33% and the EU 19%)3. India benefits from importing Vietnamese steelAccording to a report by The Hindi Businessline, Vietnam's steel shipments to India in the hot rolled coil/strip categories increased by 300% to 0.29 million tons. Vietnam is gradually taking over for Taiwan and Indonesia as India's steel product supplier. About the domestic steel market, the Vietnam Steel Association (VSA) announced that in February 2023, the situation of steel production and consumption has prospered and grown. In particular, finished steel production reached 2.35 million tons, up 21.91% compared to January 2023. It is fully capable of meeting the requirements for scale, quality, and standards for steel shipments to India with the current production capacity of large Vietnamese steel enterprises like Hoa Phat Group, Ton Hoa Sen, Ton Nam Kim, Ton Dong A,...However, the process and procedures for exporting goods to India have never been straightforward when this country uses anti-dumping measures most often. India was responsible for 16.95 percent of the nearly 6,500 anti-dumping investigations that were launched worldwide, with 1,100 lawsuits. Currently, India applies 767 anti-dumping measures against goods imported from China, Korea, Taiwan, EU, Thailand, Indonesia, Japan, Malaysia, USA,...Vietnam is not in the top 10 countries most affected by India's anti-dumping measures. In addition, India has signed an FTA with ASEAN countries (AIFTA), helping Viet Nam enjoy many preferential import duty rates, contributing to bringing the price of imported steel into India much lower than that of other countries.On June 23, 2020, the Indian Ministry of Finance also canceled the order to impose anti-dumping tax on Vietnamese aluminum-zinc alloy coated steel products, lowering the duty rate to 0%.4. The most profitable solution to export steel from VietnamIndian importers can benefit from and own high-quality Vietnamese steel products at the best prices thanks to the 0% duty rate. AG������Ϸ Steel is a business that helps you import a variety of steel products from Vietnam, sourcing and supporting the import to help you save time, money, and reduce the risk of theft and fraud. We are headquartered in Vietnam, a network connected with the largest domestic steel corporations to support export steel to many global markets such as the EU, US, Canada, Mexico, Australia, Middle East, and Southeast Asia. If you have any questions or require additional information about the Vietnamese steel market, please contact AG������Ϸ Steel via email at [email protected] for the best assistance from a team of experts.

Tensions in trade between Turkey and the EU have always been a never-ending matter. Recently, on April 18, 2023, the European Commission expanded an investigation against the sale of hot rolled stainless steel prices from Turkey due to suspicions about the origin of these items from Indonesia.1. EU accuses Turkey's support of cheating for Indonesian steel to enter the marketThe EU  has discovered that Turkey's HRSS (hot roll stainless steel) has been disposed of before being dispensed to the European market. This has raised doubts when the origin of this item comes from Indonesia, which is considered a severe circumvention of the anti-dumping duty.Statistical table of SSR import volume from Turkey and Indonesia to the EU marketIn October 2020, the European Commission imposed an anti-dumping duty on hot-rolled stainless steel imported from Indonesia at a rate of 17.3%.However, on June 17, 2022, the European Commission received an investigation requesting signs of anti-dumping tax evasion from Indonesian manufacturers. Products investigated in the following codes: HS 7219 11, 7219 12, 7219 13, 7219 14, 7219 22, 7219 23, 7219 24, 7220 11, and 7220 12.Some data provide that there has been a significant change in the volume import of stainless steel plates (the primary raw material for the production of hot-rolled stainless steel) from Indonesia to Turkey and the volume of exports of hot-rolled stainless steel surged from Turkey to the European market. The European side believes that Indonesian manufacturers have circumvented the law by changing the location of product assembly and borrowing from consignment in Turkey to avoid anti-dumping tax.Statistical table of imported stainless steel plates from Indonesia to the Turkey market2. Some responses from Turkish steel exportersAfter the announcements, Çolakoğlu - a steel exporter in Turkey argued against it. He said it was an absurd and unfounded decision when the EU only relied on statistical data about Turkey's hot-rolled stainless steel imports and the number of stainless steel plates from Indonesia to conclude.In addition, other exporters in Turkey claim that importing stainless steel plates from Indonesia is a normal commercial activity as it helps Turkey steel factories have more diverse input materials. In the opinion of Turkey's steel exporters, the EU's expansion of investigation measures and the imposition of anti-dumping duties on Turkey will give them more losses than benefits they receive. Specifically, the price will be increased many times; the most damaged person is still the end user in the region, which seems to go against the interests of the Alliance.3. What is the direction for steel exporters in the EU market?Europe has long been recognized as an essential market with much potential but is fraught with strict barriers. One of the typical challenges is the level of tariff quotas for imported steel and numerous recent trade remedy lawsuits.From the perspective of Vietnam - one of the countries with outstanding export development, steel is a commodity getting involved in trade remedy lawsuits quickly. Although Vietnam's steel export situation still faces trade remedies in Europe, opportunities still exist for Vietnamese steel manufacturers.Until now, Vietnam has 15 contracts of Free Trade Agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam-EU FTA (EVFTA), etc. Depending on this covenant, import tariffs are reduced significantly compared to other countries in the region.As for anti-dumping, steel products imported from Vietnam to the EU are complementary and not in direct competition. The reason is that the import proportion of Vietnamese steel enterprises is still relatively low, so it is not enough to threaten the competition of manufacturers in the region. 

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’s 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��2024.In 2022, China's steel exports were relatively good, but production activity was weak. 2023��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.

According to a recent European Steel Association (Eurofer) report, steel consumption in the EU will rise again in 2024 at a rate of 5.4%. This is a positive sign for the European Union economy when the growth of steel demand will stimulate investment activities in construction and automobile production.The energy crisis directly affects steel consumption in the EUSince the war between Russia and Ukraine has taken place, energy prices here have been affected strongly when Russia decided to cut off gas supplies in retaliation for sanctions from the EU.Specifically, in September 2022, energy prices in Europe peaked when inflation reached 40%, which caused gas prices to increase 15-20 times compared to the normal level. High gas prices mean that electricity will be more expensive, energy costs often account for 25%-30% of product costs, and pressure from input material has stopped many steel manufacturers in the area.The specific data of energy inflation in Europe from 2020 - 2023Faced with the shortage of gas energy sources, the Association of Steel Manufacturers has simultaneously called on the government to sponsor anti-crisis policies. In February 2023, the crisis situation showed signs of abating when energy inflation in Europe was only 16.6%. Thanks to government support, dependence on energy from Russia has reduced, and convenient weather in winter has helped decrease energy consumption in Europe. In early 2023, energy prices in the EU fell to roughly the same level as at the period when Russia began attacking Ukraine.The recovery of the construction and automobile industry stimulated steel demandThe construction and auto industries are typical sectors that account for a large percentage of steel consumption in the EU market. Specifically, the construction industry, which accounts for 35% of the total EU steel demand, has shown signs of recovery in 2022. Although the recovery has returned, the growth rate is assessed to be slow due to tight monetary policies and inflation is still there.The market share of the steel-consuming industries in EuropeEU car production started to grow in the second half of 2022, however, consumption volume declined due to pressures from the lack of manufacturing components and the loss of consumer confidence after the time of the energy crisis.According to many reports, the number of car registrations in the region is expected to continue to grow by 5% in 2023. Experts predict that the steel consumption for the automotive sector will increase clearly by the production orders remaining from 2022. The lack of energy caused many manufacturing plants to temporarily close, leading to a lot of uncompleted production orders.Some predictions come from the World Steel Association, global steel demand in 2023 will increase by 2.3% compared to 2022, reaching 1822 billion tons. Many experts expect this number to continue to rise in a more positive direction in 2024 with a growth rate of 1.7% compared to 2023, to 1854 billion tons.Opportunities for Vietnam before the recovery from steel consumption in the EUAlthough the problem of gas shortages in Europe has been minimized thanks to the sponsor from the government, this will not be a viable solution in the long term. The pressure of the lack of input materials will slow down the growth of steel production in the EU, and this domino effect will approach other manufacturing industries that depend on steel.By the end of 2022 and the whole of 2023, Europe will need to depend on imported sources of HRC steel, galvanized steel, and long steel to further serve the steel consumption for construction and manufacturing industries in the region. This will be an excellent opportunity for Vietnamese steel businesses because this country is also one of the few steel importers that have not been taxed on trade remedies in the European market. Currently, the EU is imposing an import quota of about 2 million tons per year for Vietnam in the period from July 2021 to June 2024.