The reason why Vietnam's steel exports to Malaysia increased by more than 600%

The reason why Vietnam's steel exports to Malaysia increased by more than 600%

 

According to the General Statistics Office, in the first two months of 2024, iron and steel exports reached 1.5 billion USD. This result is considered positive, up 19% in volume and 13% in value compared to the same period in 2023.

 

The average export price of steel in February 2024 reached 713 USD/ton, up 0.6% over the previous month. ASEAN is Vietnam's largest steel export market, accounting for 32% of the export market share. Next are the EU and the US, ranked 2nd and 3rd, accounting for 28% and 9%, respectively.

 

Notably, in the first month of 2024, iron and steel exports grew impressively by 3 digits from a number of markets such as Italy, the US and Malaysia.

 

Specifically, by the end of January 2024, Vietnam's iron and steel exports to Italy reached 203,000 tons, up 114% over the same period last year. Exports to the US reached 139,000 tons, up 419%.

 

In particular, steel exports to the Malaysian market increased sharply in volume, reaching 120,000 tons in the first month of the year, up 625% over the same period in 2023.

 

Vietnam's steel exports increased sharply at the beginning of the year. Photo: QH

Explaining the reason for the sharpest increase in steel imports from countries such as Malaysia, a representative of a Vietnamese steel export company said that public investment in infrastructure projects will boost steel demand, especially construction steel in ASEAN countries, especially Malaysia.

 

According to the Southeast Asian Iron and Steel Institute (SEAISI), construction activities in the region, especially infrastructure construction, are being boosted, which is expected to boost steel demand in ASEAN countries. ASEAN steel demand is expected to increase in the next two years as construction activities in the region recover.

 

Infrastructure construction activities are being boosted, which is boosting the demand for steel imports from ASEAN countries such as Malaysia.

Photo: QH

Global steel demand is forecast to recover strongly in 2024, increasing by 2%, reaching 1.8 billion tons in 2024, so Vietnam's steel production will have many opportunities, expected to increase by about 10% in 2024.