Singapore – Vietnam’s growing steel industry could affect global steel trade patterns in 2019, given the country’s strong performance in overseas markets and increasing steel production.
Vietnam managed to boost its exports to the us in 2018 despite us tariffs on 232 steel and aluminium, while other Asian steelmakers saw their exports fall.
The U.S. imported 1.11 million tons of Steel products from Vietnam in 2018, up 48 percent from 749,000 tons in 2017, according to the American Iron and Steel Institute on March 6, citing Census Bureau data.
One reason for the increase in exports is that Formosa Ha Tinh steel started its second blast furnace on May 18, 2018, doubling its crude steel output to 7 million tons per year.
Although us steel imports for 2018 fell 13.1 per cent year-on-year to 25.69 million tonnes, down from 29.56 million tonnes in 2017, the share of steel imports from Vietnam in total us steel imports for 2018 rose significantly from 2.5 per cent last year.
In 2018, Vietnam’s total exports of steel products reached 6.26 million tons, up 33 percent from 4.71 million tons in 2017.Instead, Vietnam imported 13.5 million tons of steel in 2018, down 10 percent from 15 million tons in 2017.
The Vietnam steel Association said the divergence was due to domestic production of finished steel products rising to 24.19m tonnes in 2018, up 14.9 per cent from the same period in 2017.
Citi Research said in a March 7 report on Vietnam’s steel industry: “when looking at global steel production trends, it is useful to focus on the growth of steel in countries that are not traditional steel producers, as this growth is likely to affect the global steel trade balance.”
Post time: Mar-19-2019