Vietnam
EnglishIn the world, the demand for iron and steel in the coming year is forecasted to be large with large construction projects of many countries.
Specifically, world steel demand has increased significantly since the first quarter of 2021 when a series of countries approved and accelerated the construction of infrastructural projects. This trend will continue at least until the end of the first half of 2022, thereby stimulating Vietnamese steel manufacturers to boost exports, especially to the US market.
Accordingly, the United States has just approved and deployed a $1.2 trillion infrastructure investment package, marking the largest investment in US infrastructure since the Federal Aid Highway Act of 1956. In this package, it is worth noting that projects with demand for steel mobilization include USD 110 billion for roads, key transport projects USD 66 billion for railways, USD 39 billion for public transport and $7.5 billion for electric vehicles. Experts say that every $100 billion of new investment in infrastructure will increase domestic steel demand by 5 million tons
Referring to the Chinese market, experts said, with the biggest increase in consumption demand, and a temporary shortage of steel suppliers in China, Vietnam's steel exports to the billion-people market will grow well. The increased market demand in this country and competitive prices are advantages for domestic enterprises to export steel. Experts in this country further analyzed that China gradually reduced its export output, causing a shortage for partners that regularly import steel from this country. That will open up great opportunities for surrounding countries to penetrate this market, especially Vietnam.
In a similar situation in the European market, safeguard measures such as the application of quotas make it difficult for countries that are large exporters to Europe in a short time to increase output and demand spikes. Experts said that this is an opportunity for Vietnamese steel enterprises to export to this market. In terms of price, currently, the production steel price of Vietnamese enterprises is quite competitive because manufacturers are self-sufficient in the supply of hot-rolled coil (HRC).
Finally, the Indian government has also announced the launch of a $1.350 billion infrastructure investment plan in early August next year. This investment package will focus on promoting industrial production and economic growth with a focus on expanding transport infrastructure and using cleaner fuels. Therefore, the market is also an opportunity for Vietnam to export.
Source: Enterprise Integration
