Research Report on Vietnam Steel Industry, 2018-2022

The post Sample of Research Report on Vietnam Steel Industry, 2018-2022 first appeared on CRI Report.

The growth rate of Vietnam’s GDP in 2017 was about 6.8%, a relatively high level in Southeast Asia. Vietnam’s economy has been increasing rapidly for many years, but wages of the manufacturing are still at a low level, which were less than 50% in China and far below that of the developed countries in 2017.

According to CRI, as Vietnam’s economy develops and the living standards of residents rise, the demand for steel in the industries such as construction, automobiles and home appliances is also going up. The rapid development of steel demand has attracted many steel enterprises to build new steel capacity in Vietnam. Overall, Vietnam’s steel industry is still growing and the homemade steel cannot meet the needs of the domestic market. In 2017, the production volume of crude steel in Vietnam reached 10.3 million tons, representing a CAGR of 16.5% from 2013 to 2017. However, the demand for steel in the domestic market approached 20 million tons. Therefore, it is estimated to take 3-5 years before the steel production can basically satisfy the market demand.

Based on CRI’s analysis, seeing the huge potential of the steel market in Vietnam and even Southeast Asia, many enterprises have invested in Vietnam’s steel industry in recent years. The largest investment case is Formosa Ha Tinh Steel Corporation (FHS), which is a joint venture by Formosa Plastic Group, China Steel Corporation and Japan’s JFE Holdings, with a first-phase investment of more than USD 10 billion. Due to the rapid increase in production capacity of the steel industry in recent years, the supply of some types of steel in Vietnam has exceeded the demand, including concrete iron or steel for construction, cold-rolled steel coil products, etc. In order to reduce large quantities of imports such as hot-rolled steel coils and electromagnetic steel sheets, the Vietnam government is actively attracting foreign investors to establish positions in the country.

CRI analyzes that there are more than 100 companies in Vietnam’s steel industry, of which the larger ones include Hoa Phat Steel, Hoa Sen Steel, Vietnam Steel Corporation, SMC Steel Company Limited, VSC – POSCO STEEL CORPORATION (VPS), Formosa Ha Tinh Steel Corporation (FHS) and so on.

At present, the government has not formulated nationwide policies for foreign investment in the steel industry. However, steel companies have been set up in many industrial parks in Vietnam, which are granted with preferential policies in taxation and other aspects.

In addition, as Vietnam’s manufacturing and construction industries develop rapidly, the demand for steel will continue to increase. It is estimated that, during 2018-2022, Vietnam’s roads, airports and other infrastructure, housing construction, automobile, home appliances and other industries will all maintain a high growth rate. On the whole, most of the domestic steel manufacturers are extremely low in production capacity (no more than 1 million tons a year), with the outdated equipment. Foreign-funded enterprises have seen great market prospects in investing in the steel industry of Vietnam, especially to establish one-stop businesses from the production of crude steel to the processing of various kinds of steel. For one thing, these steel enterprises can market in Vietnam. For another, they can export products to the Southeast Asian market with a total population of nearly 700 million, and even to the Asia-Pacific market with a population of more than 2 billion.

CRI considers that the Vietnam steel market will become one of the fastest growing markets in the world from 2018 to 2022. Meanwhile, the CAGR of production volume of crude steel is projected to exceed 20%. By 2022, Vietnam will become a net exporter of steel.

Topics:

– Economic Environment of Vietnam Steel Market

– Policy Environment of Foreign Investment in Vietnam Steel Industry

– Analysis on Labor Costs in Vietnam

– Analysis on Supply and Demand of Steel in Vietnam

– Analysis on Import and Export of Steel in Vietnam

– Analysis on Competition of Vietnam Steel Market

– Analysis on Major Steel Manufacturers in Vietnam

– Driving Forces and Market Opportunities in Vietnam Steel Industry, 2018-2022

– Threats and Challenges Faced by Vietnam Steel Industry, 2018-2022

– Forecast on Investment and Development of Vietnam Steel Industry, 2018-2022

The post Research Report on Vietnam Steel Industry, 2018-2022 first appeared on CRI Report.

Steel products refer to materials of various shapes, sizes and performances through pressure process of steel ingot, billet or steel. Steel product is a kind of important industrial and construction materials, of which the quantity demanded is closely related to the economic situation. The demand for steel products rises with the development of economy, which enhances the price of steel products and vice versa. In 2015, the increase of China’s GDP slowed down with the growth of 6.9% YOY. Industries above designated size increased by 6.1% compared to 2014. With the proceeding of economic structural adjustments in China, steel industry will face huge challenges. In 2015, the output volume of steel products reached approximately 1,123 million tons in China declining by 0.15% compared to 2014, which dropped for the first time in the past 34 years.

Major leading enterprises are state-holding enterprises with large scale which possess a complete set of supply-production-sale system through mergers. In terms of output volume, CR5 of 2015 was only about 8.6%. However, there are numerous small-sized private enterprises. Therefore, China steel industry is a fully competitive industry.

The major material of steel product manufacture is iron ore. The import of iron ore in China highly depends on foreign countries. In 2015, China imported 953 million tons of iron ore with an increase of 2.2% compared to 2014, which accounted for 81% of the national demand for iron ore. Therefore, the price trend of imported iron ore exerted a huge impact on the profit margin of steel product manufacturers. From 2013 on, the price of imported iron ore continued to fall. The price of iron ore imported by China in the second half of 2015 declined by more than a half compared to that in the first half of 2013. The decline is conducive to decreasing the costs of steel manufacturers so as to increase the profit margin.

In the next few years, it is predicted that the economic growth of China will continue to decline. However, the annual growth rate is expected to maintain about 6%. With the implementation of such strategies as One Belt and One Road, Made in China 2025 and Yangtze River Economic Belt, there will emerge certain demand for steel products, which will bring in new opportunities for the development of China steel industry. In recent years, steel products exported by China increased rapidly. In 2015, China exported 112.4 million tons of steel products with an increase of 19.9% YOY. The increase of exported steel products was stimulated by the international demand for steel products, which reflected the strengthening competitiveness of Chinese steel products in the international market. In spite of many trade barriers, the steel products exported by China are expected to keep increasing with huge price advantages, which will become one of the key factors in the development of China steel industry.

Through this report, the readers can acquire the following information:

-Definition and Classification of Steel Products

-Research Methods, Parameters and Assumptions

-Analysis on Competition in China Steel Industry

-Analysis on Leading Enterprises of China Steel Industry

-Development Opportunities and Driving Forces Faced by China Steel Industry

-Risks and Challenges Faced by the Development of China Steel Industry

-Analysis on Prices of Raw Materials and Products in China Steel Industry

Table of Contents

1 Relevant Concepts of Steel Industry

1.1.1 Definition

1.1.2 Classification

1.2 Parameters and Assumptions

1.2.1 Assumption Base

1.2.2 Data Sources

2 Analysis on Environment of China Steel Industry, 2011-2015

2.1 Development Environment

2.1.1 Economic Environment

2.1.2 Policy Environment

2.2 Analysis on Supply

2.3 Analysis on Demand

3 Competition Status of China Steel Industry, 2013-2015

3.1 Barriers to Entry of China Steel Industry

3.1.1 Policy Barriers

3.1.2 Fund Barriers Faced by China Steel Industry

3.2 Competition Structure of China Steel Industry

3.2.1 Bargaining Ability of Raw Material Suppliers

3.2.2 Bargaining Ability of Clients

3.2.3 Internal Competition of the Industry

3.2.4 Potential Entrants

3.2.5 Substitutes

4 Analysis on Top 5 Steel Manufacturers in China, 2013-2015

4.1 Hebei Iron & Steel Co., Ltd.

4.1.1 Enterprise Profile of Hebei Iron & Steel Co., Ltd.

4.1.2 Analysis on Output Volume and Sales of Steel Products in Hebei Iron & Steel Co., Ltd.

4.2 Baosteel Group Corporation

4.2.1 Enterprise Profile of Baosteel

4.2.2 Analysis on Output Volume and Sales of Steel Products in Baosteel

4.3 Angang Steel Co., Ltd.

4.3.1 Enterprise Profile of Angang Steel Co., Ltd.

4.3.2 Analysis on Output Volume and Sales of Steel Products

4.4 Wuhan Iron and Steel Co., Ltd.

4.4.1 Enterprise Profile of Wuhan Iron and Steel Co., Ltd.

4.4.2 Analysis on Output Volume and Sales of Steel Products in WISCO

4.5 Maanshan Iron & Steel Co., Ltd.

4.5.1 Enterprise Profile of Maanshan Iron & Steel Co., Ltd.

4.5.2 Analysis on Output Volume and Sales of Steel Products in Maanshan Iron & Steel Co., Ltd.

5 Analysis on Prices of Raw Materials and Sales of Products in China Steel Industry, 2013-2015

5.1 Analysis on Prices of Raw Materials in China Steel Industry, 2013-2015

5.1.1 Analysis on Price of Iron Ore

5.1.2 Price of Coke

5.2 Analysis on Price of Steel in China, 2013-2015

6 Prediction on China Steel Industry, 2016-2020

6.1 Factors Influencing the Development of China Steel Industry

6.1.1 Major Driving Forces and Market Opportunities in China Steel Industry

6.1.2 Risks and Challenges Faced by China Steel Industry

6.2 Forecast on Supply of Steel Products in China

6.3 Forecast on Market Demand in China, 2016-2020

Selected Charts

Chart Classification of Steel Products by Material

Chart Gross Output Value of China Construction Industry, 2011-2015

Chart Policy, Laws and Regulations Concerning China Steel Industry

Chart Output Volume of Steel Products in China, 2011-2015

Chart Consumption Volume of Steel Products in China, 2011-2015

Chart Major Steel Manufacturers and Their Market Share in China, 2013-2015

Chart Output Volume of Steel Products in Hebei Iron & Steel Co., Ltd., 2013-2015

Chart Output Volume of Steel Products in Baosteel, 2013-2015

Chart Analysis on Sales of Steel Products in Baosteel, 2013-2015

Chart Output Volume of Steel Products in Angang, 2013-2015

Chart Output Volume of Steel Products in Wuhan Iron and Steel Co., Ltd., 2013-2015

Chart Analysis on Sales of Steel Products in Wuhan Iron and Steel Co., Ltd., 2013-2015

Chart Analysis on Sales of Steel Products in Maanshan Iron & Steel Co., Ltd., 2013-2015

Chart Price Trend of Imported Iron Ore in China, 2013-2015

Chart Factory Price of Coke in China, 2013-2015

Chart Aggregative Price Index of Steel Products in China, 2013-2015

Chart Aggregative Price Index of Long Products in China, 2013-2015

Chart Aggregative Price Index of Hot Rolled Coils in China, 2013-2015

Chart Forecast on Output Volume of Steel Products in China, 2016-2020

Chart Forecast on Demand for Steel Products in China, 2016-2020

The post China Steel Industry Overview, 2011-2020 first appeared on CRI Report.