Steel industry to see optimistic export prospects in year ahead
VOV.VN - With positive signs recorded for steel exports in the first months of the year, the steel industry is anticipated to enjoy brighter export prospects this year, according to industry insiders.
The General Department of Vietnam Customs reported Vietnam exported 1.54 million tonnes of iron and steel between the beginning of the year and mid-February, raking in nearly US$1.1 billion in export earnings, up 65% volume and 66.2% in value.
Most notably, January alone saw iron and steel exports record impressive three-digit growth in several markets such as Italy (114%), the United States (419%), and Malaysia (625%).
The average export steel price in February rose by 0.6% to US$713 per tonne from the previous month, while two-month steel price declined by 1.7% to US$711 per tonne against the same period last year.
Industry insiders noted that the steel industry is projected to see a wealth of opportunities for breakthroughs this year thanks to favourable factors from export markets.
According to MB Securities Joint Stock Company (MBS), with the gradual rebound since the end of 2023, construction steel prices are forecast to increase by 6% to US$607 per tonne on average this year.
Most notably, the price difference between Vietnamese and Chinese steel currently stands at only US$30 per tonne, lower than the average of US$50 per tonne seen over the past two years, which is expected to help Vietnamese steel products not suffer any price competition pressure from Chinese rivals.
Over the medium term, when the real estate market enters a recovery cycle in 2025 as expected, construction steel prices will likely continue to increase by 8% to US$664 per tonne.
However, the Vietnam Steel Association pointed out that the steel industry is anticipated to face a number of challenges related to new policies enforced by China and the EU, along with issues on green transformation, emission reduction, and trade defense policies.
Local steel enterprises are therefore required to closely follow the consumption demand in export markets to proactively devise concrete plans moving forward.
Over the long term, they are advised to actively renovate technology, focus on green transformation and green production to reduce carbon emissions, and enhance management capacity over accounting systems in accordance with international standards in order to minimise the risk of trade defence measures.
