In July this year, Vietnam steel imports went up by five percent to 1.239 million mt in comparison with the same period of last year, according to the latest customs statistics. Moreover, the volume jumped by 19 percent or more than 200,000 mt from June. The increase was connected with worsening of the situation in the local markets at major exporter countries, higher production and as a result lower prices, offered to Vietnamese buyers.
The supply hike was registered mainly for non-Chinese steel. Shipments from China came to 424,835 mt in July, 33 percent down from the figure in July 2019 and five percent down from June. Chinese exporters became more active in August, seeing weaker local demand, which may result in rebound of imports from China in coming months.
Japan, Korea, India, Russia and Brazil managed to increase sales to Vietnam in July. Exporters from Japan enlarged supplies by 15 percent year on year to 203,310 mt mainly due to the higher production following repairs in the first quarter and still not supportive local market. Imports from Korea increased also by 15 percent. Indian suppliers were still one of the most active in sales and managed to increase shipments in July by 30 percent to 83,951 mt.
In January-July this year, ex-China imports to Vietnam lost 10.7 percent or more than 400,000 mt, while India more than doubled shipments from 314,431 mt in the first seven months of 2018 to 722,683 mt. It is unlikely that India will change its export oriented strategy until October, when some improvement of local demand in expected due to monsoon season end.
