The Two Key Happenings in Vietnam Steel Sector this Week

Steel Major Hoa Sen Ships Highest Steel Export Order to Europe

As per the market sources Vietnam’s steel major Hoa Sen Group exported 15,000 tonnes of steel to Europe on 8 May’18. The exported steel is as per the European standard and is shipped through a vessel with a capacity of 63,000 tonnes.

The shipment marked a step forward in the export activities of Hoa Sen Group as well as the domestic steel industry, which showed the potential of Viet Nam in the steel production sector.

The company is also expected to ship another 15,000 tonnes of galvanised steel to the European market this year.

The export volume of 15,000 tonnes of steel that was sent to Europe was manufactured at the Hoa Sen-Nhon Hoi-Binh Dinh steel plant. The group is currently constructing second phase of this plant with a capacity of 400,000 tonnes per year.

Vietnam’s steel sector is witnessing strong growth in its production, consumption and exports since last year. According to VSA (Vietnam Steel Association) report, the country exported more than one million tonne of construction steel in 2017, a y-o-y increase of 62% whereas in first three months of 2018 (Jan to Mar) the country steel exports exceeded USD 1 million.

Japan’s Kyoei Steel to increase investment in Vietnam’s steel mill

Kyoei Steel which is Japan’s largest rebar producer has declared to increase its stake in Vietnam Italy Steel Joint Stock Company, or VIS from 20% to 65% and make VIS its subsidiary. Kyoei Steel had acquired 20% stake in VIS in Nov’17.

VIS which is located in Vietnam’s Hung Yen province has steelmaking capacity of 450,000 tonnes and rebar plus wire rod rolling capacity of 300,000 tonnes.

VIS has been supplying billet to Kyoei Steel Vietnam Company, or KSVC, meeting around 25% of its total requirement.

After making VIS its subsidiary, Kyoei Steel will have three production bases in Vietnam as Kyoei Steel having a steelmaking plant with a production capacity of 500,000 tonnes per year in southern Vietnam under the name Vina Kyoei Steel and two bar rolling mills with a total capacity of 950,000 tonnes per year.