The steel industry in Việt Nam is expected to have a positive outlook for 2024, with major companies like Hoà Phát and Hoa Sen projected to experience significant recoveries, while small businesses may face challenges in finding output due to the recovery of steel prices and demand from large contractors.
According to Tiên Phong Securities (TPS), the outlook for the steel industry to the end of 2024 is largely positive. The domestic economy is showing signs of improvement, with construction projects resuming, feeding into a more vibrant steel consumption market after the Lunar New Year holiday.
Steel enterprises have seen smooth progress in the first quarter of this year. However, the consumption of construction steel in Việt Nam experienced a 20 per cent decline compared to the fourth quarter of the previous year, mainly due to weak demand from the real estate market.
Financial reports from steel industry enterprises in the first quarter of 2024 indicate improved business results after a volatile period. TPS estimates that the revenue of steel industry enterprises increased by 22 per cent to VNĐ68.8 trillion compared to the same period last year. Net profit also saw a significant increase of 571 per cent to VNĐ3.3 trillion. These positive results can be attributed to the strong growth in finished steel exports and stable input material prices.
