Steels from India to Vietnam dramatically rise
Steel imports in some market decreased in volume but increased in value. Notably, steel imports from India dramatically increased in volume and value
According to statistics from the General Department of Customs, steel imports in June 2017 reached nearly 1.1 million tons, worth US $ 649 million, down 10.9% in volume and 15.6% in value over the previous month. Therefore, the total steel imports in the first six months reached 7.91 million tons, worth US$4.61 billion, down 17.3% in volume, but up 21.8% in value year-on-year.
The main markets exporting steel to Vietnam in the first six months were: China with 3.95 million tons, worth US$ 2.23 billion, down 23.8% in volume but up 12.35 in value with an average price of US$564 /ton and Japan with 1.07 million tons, worth 646 US$ million, up 16.7% in volume and 19.4% in value.
Remarkably, steels imported from India to Vietnam in the first six months of 2017 has been dramatically increased, up 20.3 times in volume and 13.3 times in value over the same period 2016. Specifically, steel originated from India were 812,000 tons, worth US$ 422 million with a declared average price of US$ 519 per ton.
Thus, in terms of price, steel from India has the lowest price of main markets supplying steel for Vietnam. This may a factor causing the dramatic increase in steel volume imported from India According to the Ministry of Industry and Trade, imported steels, in which steel scraps highly increased since a number of foreign direct investment projects have disbursed and deployed the construction investments that rose the demand for steel.
Because of the import demand for steel scraps to produce steels to provide these projects of the domestic steel manufacturing factories highly and costs for steel production from scraps lower than buying billet, the domestic steel manufacturing factories prefer to import the scraps.