The socio-economic situation in June and the first 6 months of 2024 continued to trend positively. Many sectors achieved higher results in June than in May and the overall 6 months were better than the same period in 2023, industrial production maintained a growth trend. The steel market also showed positive signs of recovery, the construction industry increased by 7.34%, the highest increase compared to the same period in the 2020-2024 period. However, the growth trend of the steel industry has not shown any definite signs, specifically the production and sales of steel products have reversed compared to May 2024, showing that domestic steel demand has not really recovered.
Steelmaking raw material market situation:
62%Fe iron ore: The price of iron ore (62% Fe) on July 3, 2024 was traded at 114 USD/ton CFR Tianjin port, China, up 8 USD compared to the beginning of June 2024. The average iron ore price in June 2024 was 106.5 USD/ton, down 5.4% compared to the same period in 2023 and down 9.3% compared to the previous month.
Coking coal: The price of coking coal FOB Australia on July 3, 2024 was traded at around 221 USD/ton FOB, unchanged compared to the trading price in early June 2024. The average transaction price in June 2024 was USD 217/ton, up 5.9% month-on-month and up 8.1% year-on-year in 2023.
Scrap steel: The scrap steel price traded at Dong A port on July 3, 2024 was USD 380/ton, up USD 5/ton compared to early June 2024. The average scrap steel price traded at Dong A port in June 2024 was USD 374.8/ton, down 5.2% year-on-year and down slightly 0.3% compared to May 2024.
Graphite electrode: In June 2024, the export price of UHP450 electrode coal from China fluctuated around 13,300-14,800 yuan/ton.
HRC Hot Rolled Coil: HRC price on 3/7/2024 was at 531 USD/MT, CFR Vietnam, down 15 USD/MT compared to the transaction price in early June 2024, and significantly down compared to early 2023. The average HRC price in June 2024 was 539 USD/MT, down 5.2% compared to the same period in 2023 and down 2.3% compared to the previous month.
Production and sales situation of steel products:
June 2024:
Crude steel production reached 878,343 tons, down slightly by 0.4% compared to the previous month but up 27.4% compared to the same period in June 2023.
Production of finished steel products of all kinds reached 2.463 million tons, up or down 4.95% compared to May 2024 (production of all steel products recorded a decrease, except for hot-rolled coil (HRC) which increased slightly by 1.2%) but increased by 22.4% compared to the same period in 2023 (in which construction steel, HRC, galvanized steel and steel pipes still maintained high growth rates of 31.8%, 39.1%, 17.1% and 3% respectively, while cold-rolled coil (CRC) production decreased by 10.5%). Sales of finished steel products reached 2.362 million tons, down 7.53% compared to May 2024 (all finished steel products decreased except HRC which increased by 5.42%) but increased by 9.3% compared to the same period last year (only HRC sales decreased by 18.7% and steel pipes decreased by 2.9%); in which exports Exports of finished steel products of all kinds in June 2024 reached more than 662 thousand tons, up 10.9% over the previous month but down 8.9% over the same period in 2023. Exports of finished steel products all increased compared to May 2024 except for HRC down 48.2% and CRC down 40.6%.
In the first 6 months of 2024:
Finished steel production reached 14.427 million tons, up 10.1% over the same period in 2023.
Finished steel sales reached 14.274 million tons, up 14.4% over the same period in 2023. Of which, exports reached 4.216 million tons, up 8.6% over the same period last year.
\
Import and export situation of steel products:
Import situation:
In May 2024, Vietnam imported about 1.547 million tons of steel, an increase of 20.57% compared to April 2024 and an increase of 84.72% compared to the same period last year in terms of import volume. The import value reached more than 1.129 million USD, an increase of 17.91% compared to the previous month and an increase of 46.31% compared to the same period in 2023.
In the first 5 months of 2024, Vietnam imported about 6.919 million tons of finished steel products with a value of more than 5.015 billion USD, an increase of 50.21% in volume and an increase of 27.47% in value compared to the same period in 2023.
Export situation:
In May 2024, Vietnam exported about 1.117 million tons of steel, a slight increase of 0.78% compared to April 2024 but a decrease of 1.37% compared to the same period last year in terms of export volume. The export value reached more than 797 million USD, a decrease of 4.53% compared to the previous month and a decrease of 14.36% compared to the same period in 2023.
In the first 5 months of 2024, Vietnam exported about 5.505 million tons of steel, an increase of 25.61% compared to the same period last year. The export value reached 4.041 billion USD, an increase of 17.19% compared to the same period in 2023.
