Vietnam’s flat steel export to Europe will likely grow strongly this year while the global export is predicted to drop due to the Covid-19 impact, according to Viet Dragon Securities Company (VDSC).
Several galvanized steel coils manufacturer in Vietnam, such as Hoa Sen Group (HSG) and Nam Kim Steel (NKG), Ton Dong A… have received enough orders for production in the entire first quarter of this year, mainly from the EU.
EU’s proportion of flat steel imports from Vietnam rose sharply from 2-3% of the latter’s total in 2019 to 9% in the fourth quarter of 2020.
“The EU’s import volume from its largest market share of Vietnamese galvanized steel coils manufacturers, Turkey, has dropped by roughly 30% year-on-year from 3.4 million tons to 2.4 million tons, thus making room for Vietnam’s producers,” stated the VDSC in its report.
In term of coated steel, the EU’s demand is high while its temporary barriers in export have been removed.
Despite the Covid-19’s negative impacts and Vietnam’s steel products being subject to anti-dumping investigations in several markets, 2020 was a successful year for Vietnam’s steel exports.
Data from the Vietnam Steel Association revealed the export volume of construction steel and coated steel increased by 7% and 14% year-on-year, respectively in 2020.
“The pandemic’s positive effects on Vietnam’s steel export activities outweighed the negative ones,” noted the report.
Due to the limited impact of Covid-19 on Vietnam’s steel production, while other countries were hit strongly, Vietnamese manufacturers have seized opportunities to gain more market share, especially in China, Thailand, and the EU.
Temporary export difficulties in key markets, especially Indonesia, are decreasing as Covid-19 is gradually contained in countries around the world. Domestic GI GL PPGI PPGL manufacturers in Vietnam did not obtain permits to export to Indonesia as this country closed its borders control the pandemic.
As a result, many companies could not export to this country from the beginning of the year until July 2020. Hence, Vietnam’s steel export to Indonesia decreased by 37% year-on-year in volume terms.
Anti-dumping and anti-subsidy duties on Vietnam’s steel products
Vietnam’s flat steel products were also under new anti-dumping investigations in Australia, the Philippines, US, and Turkey in 2020.