China's steel imports from Vietnam increased by 88%! Vietnam suddenly plans to cut exports

In recent years, Vietnam's foreign economic policy has been tightening to restrict import and export, which makes the outside world think that Vietnam's trade may be impacted. However, unexpectedly, due to the continuous increase in the supply and demand of large-scale products such as steel in various countries, China's steel imports from Vietnam and China's steel exports to Vietnam have shown a sharp upward trend recently.

At a time when China became Vietnam's biggest buyer of steel, Vietnam suddenly planned to reduce its exports. What's going on?

Vietnam and China have seen steel imports and exports soar several times:
According to foreign media reports, a data released by the Vietnamese government shows that the number of finished steel exports from Vietnam to China has reached the highest point, up 88% compared with the previous period. In addition, Vietnam's import of steel from China has also reached a staggering 13 million tons, up more than 200% compared with that of China. China has become Vietnam's major steel importer at one stroke.
Even though Vietnam's domestic iron and steel enterprises are actively increasing production, there are still some deficiencies in iron and steel production and demand, which can only be made up by a certain amount of self-sufficiency.

To this end, the Vietnamese government called on domestic steel production enterprises to give priority to meet domestic demand for steel production. Although Vietnam's steel exports to China have soared, this is far less than a fraction of China's huge steel production. According to authoritative data in the first quarter of this year, Vietnam's steel output imported from China is more than several times that of Vietnam's steel output exported to China. In other words, Vietnam's steel import to China still has a lot of room for growth.

What is the reason for this:
Why do steel prices suddenly soar and why do China and Vietnam import and export steel to each other? If you think about it carefully, the reason is very simple. Due to the impact of the epidemic on the world economy, China and Vietnam will have more or less overcapacity in their respective steel production, and both countries urgently need import and export to accelerate the circulation and turnover rate of the domestic steel industry supply chain of the two countries.

Vietnam, as the largest steel consumer, is naturally the most suitable direction for China's export, and so is China. As for the reasons for the price rise, the above "operation" between China and Vietnam will increase the supply and demand of the steel market and raise the price of the steel trading market worldwide.

Once Vietnam announces to reduce its steel export volume this time, the follow-up will have a very adverse impact on the steel trading markets of China, Vietnam and other countries around the world. It can only be said that China does not want to see this situation. In addition, China will not worry about the breeding of steel industry at all.
On the contrary, Vietnam, in the case of large import volume, shrinking export volume and short supply of domestic steel, should consider how to fundamentally solve the problem.