Việt Dragon Securities Corporation (VDSC) has stated that higher galvanized steel demand from the EU and North America increased Vietnam’s export volumes in the January-June period this year and offset weak domestic consumption amid measures taken due to the pandemic. These markets account for 80-90 percent of Vietnam-based Nam Kim’s galvanized steel exports and 30 percent of Vietnamese steelmaker Hoa Sen’s exports.
The officials stated that Vietnam has an advantage regarding galvanized steel exports, amid quotas and duties, over its competitors Turkey, South Korea and India. VDSC said it expects Vietnam’s galvanized steel exports to the EU markets to be stable at a high level until the end of 2022 amid rising demand and trade policies. VDSC also forecast that EU steel consumption will increase by 10.2 percent in 2021 and by 4.8 percent in 2022.
Meanwhile, lower production costs in Vietnam may support galvanized steel export revenues in the medium term, SteelOrbis understands. VDSC also stated that Vietnam’s galvanized steel export volumes and profits may decrease sharply in 2023 amid a possible carbon border mechanism in the EU.
In July this year, Hoa Sen’s galvanized steel sales totaled 158,000 mt compared to 155,000 mt in June, of which the company’s export volume increased to 123,000 mt from 102,000 mt in June. Nam Kim’s galvanized steel exports volume amounted to 62,000 mt in July, compared to 63,500 mt in June.