Steel is an alloy of carbon and iron with a small percentage of other metals for instance nickel, chromium, cobalt, molybdenum, aluminum, tungsten etc. It is a hard ductile & malleable solid. There are several different types of steel categorized on the basis of the type of metal used and the percentage content of the metal in the specific type of steel. Some commonly used types of steels are stainless steel, high carbon steel, mild carbon steel and medium carbon steel. Stainless steel is the most resistant and generally used steel of all the types. It contains 11 percent chromium and some amount of nickel. High carbon steel is basically composed of carbon and iron with a more percentage of carbon in it than the iron. Mild steel is composed of iron and carbon but it has a very low percentage of carbon. Medium carbon steel has a normal percentage of carbon that means that they are not as strong as the mild carbon steel and neither are they as hard the high carbon steel.
The key advantages are included repetitive use, speed of erection, ease of repair, expanding existing structures, quality of construction and adaptation of prefabrication etc. Apart from this, few of the limitations are subjected to bulking, corrosion and expensive fireproof treatment.
According to study, “Vietnam Steel Comprehensive Report Q4/2019” the key companies operating in the Vietnam steel industry are Hoa Phat Joint Stock Company, Italy Steel Joint Stock Company, Hoa Sen Group, DANA Iron and Steel Joint Stock Company, Thai Nguyen Iron And Steel JSC, Nam Kim Steel Joint Stock Company, Pomina Steel Corporation, SMC Steel Company Limited, Hoa Sen Group, Tienlen Corporation, Vietnam Germany Steel Pipe JSC, Thien Nam Trading Import Export JSC, Dai Thien Loc Corporation (DTL).
Based on type, Vietnam steel industry is segmented into long steel and flat steel. Flat steel products include slabs, cold-rolled coils, hot-rolled coils, tinplate, coated steel, and heavy plate. The flat steel segment is anticipated to witness higher growth rate owing to rise in use in numerous applications including construction, heavy machinery, tubes, pipes, appliances, and packaging during the forecast period. Based on product, market is segmented into structural steel, bright steel, iron steel wire, welding wire/rod, ropes, braids, pre-stressing steel, and others. The structural steel segment dominates the market due to rise in use of structural steel in construction applications primarily in building frames of buildings and bridges. In addition, based on application, market is segmented into building & construction, metal products, electrical appliances, domestic appliances, welding wire/rod, domestic appliances, metal products, mechanical equipment, automotive and others. The building & construction sector is anticipated to exhibit substantial growth rate as a result of growth in residential construction activities during the forecast period.
The Vietnam steel industry is driven by increase in infrastructural activities both in the residential and commercial construction followed by rise in industrialization & surge in infrastructure investment in emerging cities, growth in urban population and growth in adoption of steel in the electrical appliances, automotive, and other end-use industries. However, volatile price of raw materials may impact the market. Moreover, relaxed credit policy in country and high recyclability of steel scrap are key opportunities for market. Furthermore, eliminate the excess capacity is a major trend for market.
In Q4/2019, Vietnam steel industry was grown-up owing to increase in investment by many enterprises. In upcoming years, it is predicted that future of the market will be bright on account of rise in new construction projects and better disbursement situation during the forecast period.
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Ankur Gupta, Head Marketing & Communications