Vietnam's steel industry is forging ahead with remarkable momentum, as evidenced by a 14% surge in production to 20.8 million tons in 2022, signaling a nation busily building its future.
Key Takeaways
- Vietnam's crude steel production reached 20.8 million metric tons in 2022, marking a 14% increase from 2021.
- Hoa Phat Group produced 8.2 million tons of crude steel in 2023, accounting for nearly 40% of Vietnam's total output.
- Vietnam's steel billet production surged to 12.5 million tons in 2022.
- Installed crude steelmaking capacity in Vietnam reached 45 million tons per year by end-2023.
- Hoa Phat Group's total steel capacity expanded to 14.5 million tons annually in 2023.
- Formosa Ha Tinh steel complex has a capacity of 22 million tons of hot-rolled coil per year.
- Vietnam's apparent steel consumption was 25.2 million tons in 2022.
- Domestic steel demand in Vietnam grew 12% to 27 million tons in 2023.
- Construction sector accounted for 65% of Vietnam's steel consumption in 2023.
- Vietnam exported 15.4 million tons of steel products in 2023.
- Steel exports from Vietnam grew 28% year-on-year to $10.2 billion in 2023.
- HRC exports reached 4.2 million tons in 2023, mainly to ASEAN.
- Vietnam's average HRC export price was $650/ton in Dec 2023.
- Domestic rebar price in Vietnam averaged VND 14.5 million/ton in 2023.
- Hoa Phat Group's revenue from steel sales was VND 120 trillion in 2023.
Vietnam's steel industry shows strong growth in production, capacity, and exports.
Capacity and Infrastructure
- Installed crude steelmaking capacity in Vietnam reached 45 million tons per year by end-2023.
- Hoa Phat Group's total steel capacity expanded to 14.5 million tons annually in 2023.
- Formosa Ha Tinh steel complex has a capacity of 22 million tons of hot-rolled coil per year.
- Vietnam Steel Corporation (Pomina) capacity stands at 2.5 million tons of long products annually.
- New EAF capacity additions in Vietnam totaled 3 million tons in 2023.
- Dung Quat Steel Plant's blast furnace capacity is 5.6 million tons per year.
- Vietnam's HRC rolling capacity exceeded 15 million tons by 2023.
- Total flat steel capacity in Vietnam reached 18 million tons annually in 2022.
- Rebar rolling mills capacity utilization averaged 82% in Vietnam 2023.
- Pomina's billet casting capacity is 2 million tons per year.
- Vietnam plans to add 10 million tons of steel capacity by 2025.
- Thai Nguyen Iron and Steel capacity is 1.8 million tons annually.
- New green steel projects in Vietnam target 5 million tons capacity by 2030.
- Vietnam's scrap processing capacity grew to 8 million tons in 2023.
- Hoa Phat's HP-GI color steel capacity is 1.2 million tons per year.
- Total wire rod mill capacity in Vietnam is 5.5 million tons annually.
- Steel pipe manufacturing capacity reached 6 million tons in 2023.
- Vietnam's stainless steel capacity is 0.8 million tons per year.
- New flat product lines added 2 million tons capacity in 2022.
- Long steel capacity utilization was 78% in Q3 2023.
- Formosa's pellet plant capacity is 20 million tons per year.
- Vietnam's total DRI capacity stands at 1.5 million tons annually.
- Steel structure fabrication capacity exceeds 3 million tons in Vietnam.
- Galvanized steel line capacity added 1 million tons in 2023.
Capacity and Infrastructure Interpretation
Vietnam's steel industry has swelled into a veritable dragon, where giants like Hoa Phat and Formosa anchor a sprawling landscape of ambitious, occasionally underutilized, and increasingly green capacity that is still hungrily expanding.
Consumption and Demand
- Vietnam's apparent steel consumption was 25.2 million tons in 2022.
- Domestic steel demand in Vietnam grew 12% to 27 million tons in 2023.
- Construction sector accounted for 65% of Vietnam's steel consumption in 2023.
- Vietnam's HRC consumption reached 7.8 million tons in 2022.
- Rebar demand in Vietnam was 12.5 million tons in 2023.
- Automotive industry steel use in Vietnam hit 1.2 million tons in 2023.
- Shipbuilding sector consumed 0.9 million tons of steel plates in 2022.
- Household appliances drove 0.6 million tons galvanized steel demand in 2023.
- Infrastructure projects boosted steel demand by 15% in 2023.
- Vietnam's per capita steel consumption rose to 250 kg in 2023.
- Real estate sector steel use was 8.4 million tons in 2022.
- Electrical equipment industry consumed 1.1 million tons wire rod in 2023.
- Mechanical engineering steel demand grew 10% to 2.3 million tons in 2023.
- Oil & gas sector used 0.4 million tons seamless pipes in 2022.
- Furniture manufacturing consumed 0.3 million tons flat steel in 2023.
- Steel consumption forecast for Vietnam 2024 is 30 million tons.
- Q4 2023 steel demand surged 20% due to public investments.
- Import dependency for HRC was 45% of total consumption in 2023.
- Construction steel demand peaked at 1.1 million tons/month in Oct 2023.
- Electronics industry steel use reached 0.5 million tons in 2022.
- Renewable energy projects demanded 0.7 million tons steel structures in 2023.
- Packaging sector galvanized sheet demand was 0.2 million tons.
- Agricultural machinery steel consumption hit 0.4 million tons in 2023.
Consumption and Demand Interpretation
Vietnam's steel industry is having a proper building boom, with construction hoarding nearly two-thirds of the pie, though the scramble to keep pace is still leaving it importing nearly half of its hot-rolled coils.
Exports and Imports
- Vietnam exported 15.4 million tons of steel products in 2023.
- Steel exports from Vietnam grew 28% year-on-year to $10.2 billion in 2023.
- HRC exports reached 4.2 million tons in 2023, mainly to ASEAN.
- Rebar exports from Vietnam totaled 7.8 million tons in 2022.
- Vietnam imported 11.6 million tons of steel in 2023.
- Top export market for VN steel was Cambodia with 2.1 million tons in 2023.
- HRC imports dropped 15% to 5.3 million tons in 2023.
- Wire rod exports surged 35% to 1.9 million tons in 2023.
- Steel pipe exports valued at $2.5 billion in 2022.
- Imports from China accounted for 65% of Vietnam's steel imports in 2023.
- Galvanized steel exports hit 1.5 million tons in 2023.
- Vietnam's steel trade surplus was $1.8 billion in 2023.
- Flat steel exports grew 22% to 3.4 million tons in 2022.
- Billet exports from Vietnam reached 2.7 million tons in 2023.
- Scrap imports for steelmaking were 6.2 million tons in 2023.
- Steel exports to US increased 40% to 0.8 million tons in 2023.
- Color-coated steel exports totaled 0.9 million tons in 2022.
- Vietnam imposed anti-dumping duties on HRC imports from China in 2023.
- Stainless steel imports were 0.3 million tons in 2023.
- Top import source India supplied 1.2 million tons HRC in 2023.
- Steel exports to Philippines reached 1.3 million tons in 2023.
- Seamless pipe imports dropped to 0.2 million tons in 2022.
Exports and Imports Interpretation
While fortifying its domestic production and slapping China with anti-dumping duties, Vietnam has cunningly pivoted from a voracious steel importer into a formidable export powerhouse, cleverly flipping a $1.8 billion trade surplus by feeding ASEAN's appetite for raw HRC and rebar while sneakily boosting high-value shipments to the US.
Market Prices and Financials
- Vietnam's average HRC export price was $650/ton in Dec 2023.
- Domestic rebar price in Vietnam averaged VND 14.5 million/ton in 2023.
- Hoa Phat Group's revenue from steel sales was VND 120 trillion in 2023.
- Vietnam steel industry profit margin averaged 8.2% in 2023.
- HRC import price FOB basis was $580/ton in Q4 2023.
- Steel scrap price in Vietnam reached VND 8.5 million/ton in Oct 2023.
- Formosa Ha Tinh sales revenue hit $7.5 billion in 2023.
- Average galvanized steel price was VND 18.2 million/ton in 2023.
- Wire rod market price averaged VND 13.8 million/ton in 2022.
- Steel industry FDI in Vietnam totaled $4.2 billion by 2023.
- Vietnam steel market size valued at $15.6 billion in 2023.
- Rebar price premium over HRC was $120/ton in 2023.
- Pomina Steel revenue grew 15% to VND 25 trillion in 2023.
- Iron ore import cost for VN steelmakers averaged $110/ton CFR in 2023.
- Steel plate price hit VND 20 million/ton peak in 2023.
- Industry EBITDA margin was 12.5% for top producers in 2023.
- Color-coated steel price averaged $850/ton in 2023.
- Coal coking price for steel production was $250/ton in 2023.
- Stainless steel price surged to VND 65 million/ton in Q3 2023.
- Steel export price index rose 10% YoY in 2023.
- Electricity cost for steel mills averaged VND 1,800/kWh in 2023.
Market Prices and Financials Interpretation
While Vietnamese steelmakers are engineering impressive revenues like Hoa Phat's VND 120 trillion, their journey involves navigating narrow profit margins of 8.2%, powered by expensive inputs like $250/ton coal, and hoping domestic rebar prices at VND 14.5 million/ton can outpace the relentless pressure from $580/ton import HRC.
Production Statistics
- Vietnam's crude steel production reached 20.8 million metric tons in 2022, marking a 14% increase from 2021.
- Hoa Phat Group produced 8.2 million tons of crude steel in 2023, accounting for nearly 40% of Vietnam's total output.
- Vietnam's steel billet production surged to 12.5 million tons in 2022.
- Total long steel products output in Vietnam was 14.3 million tons in 2023.
- Flat steel production in Vietnam hit 6.7 million tons in 2022.
- Vietnam's HRC production capacity utilization reached 75% in Q4 2023.
- Annual steel rebar production in Vietnam exceeded 10 million tons in 2023.
- Vietnam produced 2.1 million tons of galvanized steel in 2022.
- Crude steel output from electric arc furnaces in Vietnam was 15.4 million tons in 2022.
- Vietnam's wire rod production totaled 4.2 million tons in 2023.
- Steel pipe production in Vietnam reached 3.8 million tons in 2022.
- Vietnam's structural steel output grew 18% to 2.9 million tons in 2023.
- Total crude steel production forecast for Vietnam in 2024 is 28 million tons.
- Hoa Phat's Dung Quat 2 blast furnace produced 4.5 million tons in 2023.
- Formosa Ha Tinh steel plant output was 6.5 million tons of HRC in 2023.
- Vietnam's scrap-based steel production increased by 22% to 9.8 million tons in 2022.
- Steel section production in Vietnam was 1.7 million tons in 2023.
- Vietnam's color-coated steel output reached 1.2 million tons in 2022.
- Blast furnace steel production in Vietnam totaled 11.3 million tons in 2023.
- Vietnam's steel plate production was 0.9 million tons in 2022.
- Total finished steel products production hit 22.5 million tons in 2023.
- Vietnam's stainless steel production grew to 0.4 million tons in 2023.
- Deformed bar production in Vietnam was 9.2 million tons in 2022.
- Equal angle steel output reached 1.1 million tons in 2023.
- Channel steel production in Vietnam totaled 0.8 million tons in 2022.
- Vietnam's I-beam production was 0.6 million tons in 2023.
- Seamless pipe production hit 0.5 million tons in 2022.
- Welded pipe output in Vietnam was 3.3 million tons in 2023.
- Vietnam's H-beam production reached 0.4 million tons in 2022.
- Steel sheet production totaled 5.1 million tons in 2023.
Production Statistics Interpretation
Vietnam's steel industry is building a skyscraper while living in it, with Hoa Phat forging nearly half the foundation, Formosa adding the walls, and a 28-million-ton ambition for the next floor.
Sources & References
- Reference 1WORLDSTEELworldsteel.orgVisit source
- Reference 2HOAPHAThoaphat.com.vnVisit source
- Reference 3STEELORBISsteelorbis.comVisit source
- Reference 4VSAvsa.com.vnVisit source
- Reference 5RESEARCHANDMARKETSresearchandmarkets.comVisit source
- Reference 6STEELRADARsteelradar.comVisit source
- Reference 7ENen.vietnamplus.vnVisit source
- Reference 8STATISTAstatista.comVisit source
- Reference 9MYSTEELmysteel.netVisit source
- Reference 10VIETNAMSTEELvietnamsteel.org.vnVisit source
- Reference 11FASTMARKETSfastmarkets.comVisit source
- Reference 12FORMOSAHA TINHSTEELformosaha Tinhsteel.com.vnVisit source
- Reference 13RECYCLINGTODAYrecyclingtoday.comVisit source
- Reference 14STEEL-TECHNOLOGYsteel-technology.comVisit source
- Reference 15GIIRESEARCHgiiresearch.comVisit source
- Reference 16VIETNAMNEWSvietnamnews.vnVisit source
- Reference 17SMRSTEELsmrsteel.comVisit source
- Reference 18METALBULLETINmetalbulletin.comVisit source
- Reference 19STEELGURUsteelguru.comVisit source
- Reference 20OILANDGASONLINEoilandgasonline.comVisit source
- Reference 21VIETNAMSTEELPIPEvietnamsteelpipe.comVisit source
- Reference 22FHTfht.com.vnVisit source
- Reference 23POMINApomina.com.vnVisit source
- Reference 24ENen.baochinhphu.vnVisit source
- Reference 25TISCOMtiscom.vnVisit source
- Reference 26REUTERSreuters.comVisit source
- Reference 27ISRIisri.orgVisit source
- Reference 28SSTAINLESSsstainless.comVisit source
- Reference 29VIETNAMSTEELSTRUCTURESvietnamsteelstructures.comVisit source
- Reference 30MYSTEELEmysteele.netVisit source
- Reference 31VAMAvama.org.vnVisit source
- Reference 32VINASHINvinashin.com.vnVisit source
- Reference 33GSOgso.gov.vnVisit source
- Reference 34VIETNAMREALESTATEvietnamrealestate.com.vnVisit source
- Reference 35MOITmoit.gov.vnVisit source
- Reference 36VAMEvame.org.vnVisit source
- Reference 37PVNpvn.vnVisit source
- Reference 38VIFAvifa.org.vnVisit source
- Reference 39EVNevn.com.vnVisit source
- Reference 40VIPPAvippa.org.vnVisit source
- Reference 41MARDmard.gov.vnVisit source
- Reference 42CUSTOMScustoms.gov.vnVisit source
- Reference 43USTRustr.govVisit source
- Reference 44FIAfia.mpi.gov.vnVisit source