In the first 9 months of 2024, Vietnam imported nearly 12.3 million tons of iron and steel, worth over 8.97 billion USD, up 31.7% in volume and 19% in turnover compared to the first 9 months of 2023.
According to preliminary statistics of General Department of Customs, in 9 months of 2024, Vietnam import nearly 12.3 million tons of iron and steel, worth over 8.97 billion USD, a sharp increase of 31.7% in volume and 19% in turnover compared to the first 9 months of 2023. The average import price reached 729.5 USD/ton, a decrease of 9.7% in price compared to the first 9 months of 2023.
In September 2024 alone, nearly 1.55 million tons of iron and steel were imported, equivalent to over 1.06 million USD, with an average price of 688 USD/ton, up 15.4% in volume, up 4.3% in value but down 9.6% in price compared to August 2024.
The largest amount of iron and steel imported into Vietnam in September came from China, with 8.31 million tons, equivalent to nearly 5.36 billion USD, priced at 644.5 USD/ton, up 50.6% in volume, up 37.8% in turnover but down 8.5% in price compared to the first 9 months of 2023. This market accounts for 67.6% of the total volume and 59.7% of the total iron and steel import turnover of the whole country.
Japanese market ranked second with 1.53 million tons, equivalent to 1.08 billion USD, import price of 708 USD/ton, up 4.4% in volume, but down 3.2% in turnover and down 7.3% in price compared to the first 9 months of 2023.
Ranked third is the Indonesian market with 524,135 tons, worth 870.67 million USD, price 1,661 USD/ton, up 4% in volume, up 2% in turnover but down 1.9% in price compared to the first 9 months of 2023.
In general, iron and steel imports in the first 9 months of 2024 from most markets increased in both volume and value compared to the first 9 months of 2023.
According to the report of the Vietnam Steel Association, Vietnam currently ranks 12th in the world and first in the ASEAN region in steel production with a production scale that could reach 30 million tons in 2024. However, the steel industry is currently facing many difficulties due to the decline of the real estate market, increasing raw material prices, large inventories... And the worrying thing for the Vietnamese steel industry is that it is at risk of losing the domestic market due to steel imported from China, because China is the leading country in importing steel into Vietnam.
In 2023, the amount of iron and steel imported from China into Vietnam reached 8.2 million tons, equivalent to more than 5.6 billion USD, accounting for 62% of the total volume and 54% of the total iron and steel import turnover of our country.
The majority of steel imports from China are mainly due to the fact that the selling price from this market is 30-70 USD lower than other markets depending on the type of product. This stems from the fact that China still has a "steel surplus", domestic consumption is decreasing, forcing steel producers in this country to increase steel exports at low prices to release some of their inventory.
China is the world's leading country in steel production and export, with about 500 steel factories of all kinds, with a total capacity of about 1.17 billion tons of steel per year by 2023. Because the steel supply is much larger than domestic demand, Chinese steel producers have begun dumping steel in foreign markets. Vietnam is one of the countries most affected by the wave of steel exports from China.
According to the World Steel Association (WSA), global steel prices in 2024 are expected to increase slightly by 3.5% compared to 2023 amid recovering demand and tightening supply. Meanwhile, the World Bank forecasts iron ore prices in 2024 at $108/ton, down 2.8% compared to 2023.
MB Securities Company forecasts that steel prices in Vietnam will recover from the fourth quarter of 2024, helping to bring the average construction steel price this year to around 571 USD/ton, up 4% compared to 2023.
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