Steel enterprises with a series of difficulties from export markets

According to experts, in 2025, the steel industry will face a series of difficulties and potential risks. Accordingly, ensuring and expanding the market is increasingly urgent.

Finished steel exports in 2024 will reach 8.042 million tons

Giving an overview of the steel industry's production and business situation in 2024 at the recent Trade Promotion Conference with the Vietnam Trade Office System, Mr. Dinh Quoc Thai - General Secretary and Vice President of the Vietnam Steel Association (VSA) said that the world steel market continues to face many difficulties due to geopolitical conflicts, strategic competition in the world and trade tensions, disruptions in the global market supply chain and many other reasons. In 2024, negative growth will continue to reach only 1.839 billion tons of crude steel (down 0.9% compared to 2023 and 2023 down 0.8% compared to 2022).

"Although directly affected by the global steel market, thanks to the drastic and effective direction of the Government and ministries in removing difficulties for the real estate and construction markets, promoting public investment projects, policies to support reconstruction and recovery after natural disasters, especially typhoon Yagi ... so in 2024, the Vietnamese steel market has gradually recovered and grown, and achieved positive results" - Mr. Thai said.

In 2024, the Vietnamese steel market gradually recovered and achieved positive results. Photo: TN

Crude steel production reached more than 21.98 million tons, up 14% over the same period in 2023; Internal crude steel consumption and sales reached 21.41 million tons, up 14% over the same period in 2023. Of which, mainly flat billet (slab) exports reached 2.783 million tons, up 55% over the same period in 2023.

Production of finished steel products of all kinds reached 29.443 million tons, up 6.1%. Of which, production of metal-coated and color-coated steel reached the highest level of 23.1%, construction steel increased by 10.1%, steel pipes increased by 3.5% and HRC was 1.5%; Only cold-rolled steel coil production recorded a negative growth rate of 19.4%.

Finished steel sales reached 29.09 million tons, up 10.4% year-on-year. Of which, finished steel exports in 2024 reached 8.042 million tons, down slightly by 0.6% year-on-year; of which all items recorded growth except hot-rolled coil, down 33.8%.

The General Secretary and Vice President of the Vietnam Steel Association emphasized: "Achieving the above results, in addition to the efforts of enterprises and workers in the Vietnamese steel industry, is thanks to the drastic participation of the Government and state management agencies in removing difficulties and promoting production and business. In addition, it is necessary to acknowledge the efforts, especially of the Ministry of Industry and Trade , in promoting trade promotion, improving the effectiveness of market management, supporting enterprises with technical solutions, improving productivity, using energy efficiently and flexibly, and effectively using trade defense tools."

Specifically, there are decisions to initiate anti-dumping investigations on galvanized and color-coated steel sheets, hot-rolled coils (HRC), and there is currently a decision to impose temporary taxes on some hot-rolled steel products originating from India and China (460/QD-BCT dated February 21, 2025), anti-dumping review of profile steel imported into Vietnam..., and effective response to many trade defense lawsuits in export markets.

Many potential risks for steel producers

Despite the positive results, however, according to experts, the recovery of the steel industry is still quite slow and has not achieved the results of 2021. Specifically, crude steel production is 95% (23 million tons), finished steel production is 89% (33 million tons), sales including exports of finished steel are equivalent (29 million tons). In addition, the recovery of the industry is still uncertain.

According to industry experts, in addition to inheriting the recovery of 2024, in 2025 the steel industry will continue to face difficulties and challenges such as: China continues to increase exports, when the domestic market is weak. Vietnamese steel manufacturers are facing the risk of losing the domestic market, which greatly affects the efficiency and employment of workers.

The oversupply of many domestically produced steel products, along with the strong increase in imported steel, will cause competitive pressure on finished steel prices and competition in the domestic market will become more fierce.

In particular, the increasing instability of the world market, supply chain disruptions, international freight rates, etc. pose many risks to steel producers. In addition, factors affecting the price of raw materials, etc. will certainly increase the cost of steel production significantly.

Increasing instability in the world market, supply chain disruptions, international freight rates, etc. pose many risks to steel producers. Photo: Moit

"The change in trade policies of major countries, especially those that have increased technical barriers, strengthened trade defense measures, and abused policies related to climate change and green growth... as tools and barriers to prevent imported steel to protect steel production in the country and territory. This will be a significant obstacle to Vietnam's steel exports in the coming time," said Mr. Thai.

Trade promotion boosts steel exports to new markets

Accordingly, to effectively respond to changes in trade policies of major countries in the current international context, in addition to diplomatic policies, VSA proposes the following recommendations:

Firstly, the state management agency, especially the Vietnam Trade Office abroad, continues to grasp, update information, and provide early warnings to businesses and associations, helping Vietnamese steel manufacturing enterprises proactively have a plan to respond from afar and early on to find opportunities and limit risks to changes in trade policies of major countries. Specifically:

The next decisions of the US Government are related to the subjects and time of tax imposition, the period of tax deferral for each subject according to Article 232 of the US Trade Expansion Act of 1962.

Negotiate and update the content of the EU imposing carbon tax on each steel product under the CBAM mechanism and monitor the EC procedure to put Vietnam on the list of countries allowed to import scrap from the EU, giving early warning to the parties to supplement the procedure (if necessary).

Second, promote and improve the capacity to protect domestic production, in the direction of tightening input and opening up output for domestically produced products.

In particular, closely study the input, including: improving the capacity to build and apply technical barriers, import procedures to ensure the requirements of technical barriers according to the provisions of law and international practices; Improving the capacity of trade defense for enterprises, in the short term to resolve the current situation of Chinese steel competing unfairly in the Vietnamese market, in the medium and long term to prevent steel from major economies from competing unfairly in the Vietnamese market.

In particular, according to VSA, it is necessary to ensure clear output from the stage of market research, introducing steel products produced in Vietnam; Trade promotion to boost steel exports to new markets; Continue to simplify export procedures; Early warning and improve the capacity to respond to trade defense cases initiated by foreign countries (negotiation, exchange, presentation of arguments and viewpoints of Vietnam on the conclusions of the investigation agency, support consultation in public consultation sessions in the country of the lawsuit...) to create competitive advantages for Vietnamese steel in traditional markets, opening up the flow of Vietnamese steel to the global market.

Source: https://congthuong.vn/doanh-nghiep-thep-voi-loat-kho-khan-tu-thi-truong-xuat-khau-378481.html