Expected steel consumption output and steel prices to improve

World market

Steel price today March 11, 2024: According to data on Trading Economics, after a slight recovery in the second half of 2023, from November 21, 2023 to February 28, 2024, world steel prices decreased by 5.9%, from 4,019 CNY/ton to 3,781 CNY/ton. Compared to the peak of 5,925 CNY/ton on October 8, 2021, current steel prices are 36.2% lower.

Exporting Hoa Phat hot rolled steel coils at Hoa Phat Dung Quat specialized port

Weak demand in the Chinese steel market in the context of the country's slowing economic growth, the real estate market has not recovered, and the electric vehicle and consumer goods manufacturing sectors show signs of oversupply, causing Chinese steel products to continue to be exported at low prices to reduce inventory.

Previously, in 2023, China exported 91.2 million tons of steel, up 35% compared to 2022. This is the main reason why world steel prices have decreased and steel prices in Vietnam have not recovered as expected, and the gross profit margins of many steel manufacturing enterprises have improved more slowly than expected. In addition, China has increased steel exports to Southeast Asian countries such as Indonesia, Thailand, and the Philippines, putting more competitive pressure on Vietnamese steel enterprises, as these are also major export markets.

However, many experts believe that in 2024, the Chinese government will take stronger actions to support the recovery of the real estate market, such as reducing the reserve requirement ratio and reducing interest rates. This will help improve the oversupply situation in the domestic steel market in China and reduce the export pressure of steel producers here. In this scenario, it is expected that steel consumption output and steel prices in Southeast Asia will improve, accordingly, the profit margin of Vietnamese steel enterprises will also be better than in 2023.

Hoa Phat sales increased by 32% since the beginning of the year

In the past 2 months, Hoa Phat Group produced 1.38 million tons of crude steel, an increase of 71% over the same period in 2023.

Hoa Phat continuously reported good news to shareholders: Sales volume increased by 32% since the beginning of the year, stock price reached a 22-month peak, signed a memorandum of understanding

In February 2024, Hoa Phat Group (stock code: HPG) produced 690,000 tons of crude steel, equivalent to the previous month. Sales volume of hot-rolled coil (HRC), construction steel, high-quality steel and steel billets supplied to the market reached 518,000 tons, down 19% compared to the first month of the year but up 9% compared to the same period last year.

Hoa Phat steel consumption output decreased mainly due to the long Lunar New Year holiday, combined with the general market demand not improving. Construction steel and high-quality steel recorded 212,000 tons, down 42% compared to January 2024. Hoa Phat also supplied more than 38,000 tons of steel billets to domestic and foreign markets, of which 25,000 tons were exported.

HRC steel reached 266,000 tons, down 3% compared to January, mainly due to the export market decreasing compared to the first month of the year. The domestic market still recorded an increase in output in all three regions.

In addition, Hoa Phat also supplied the market with 41,000 tons of steel pipes and 32,000 tons of galvanized steel, down 15% and 5% respectively compared to the first month of the year.

In the past 2 months, Hoa Phat Group produced 1.38 million tons of crude steel, up 71% over the same period in 2023. Sales of HRC steel products, construction steel, high-quality steel, and steel billets reached 1.15 million tons, up 32% over the same period.

Of which, construction steel and high-quality steel reached 575,000 tons, down 2% compared to the first 2 months of 2023. HRC steel contributed 542,000 tons, double that of the same period last year.

Regarding downstream HRC products, Hoa Phat Steel Pipe recorded 88,000 tons after 2 months, down 17%. Galvanized steel of all kinds reached 66,000 tons, up 39%, mainly due to better export output of steel in the past 2 months compared to the same period in 2023.

According to the Vietnam Steel Association report, Hoa Phat holds the No. 1 market share in Vietnam for construction steel and steel pipes with 36% and 25.27% respectively, at the end of January 2024.

Surveyed at SteelOnline.vn on March 11, 2024, specific steel prices in 3 regions are as follows:

Steel prices in the North

Today's Hoa Phat steel price for CB240 coil steel is at 14,340 VND/kg; D10 CB300 ribbed steel is stable at 14,530 VND/kg.

Viet Y steel price, with CB240 coil steel line at 14,340 VND/kg; D10 CB300 ribbed steel bar at 14,640 VND/kg.

Viet Duc steel price for CB240 coil steel is at 14,240 VND/kg, D10 CB300 ribbed steel is stable at 14,640 VND/kg.

The price of Viet Nhat Steel (VJS), with CB240 steel line stable at 14,210 VND/kg, with D10 CB300 steel line maintained at 14,310 VND/kg.

The price of Viet My Steel (VAS), with CB240 coil steel line at 14,110 VND/kg, with D10 CB300 ribbed steel line is stable at 14,210 VND/kg.

Steel prices in the Central region

Hoa Phat steel price, with CB240 coil steel line at 14,340 VND/kg; D10 CB300 ribbed steel bar at 14,490 VND/kg.

Viet Duc steel price, with CB240 coil steel line at 14,750 VND/kg; D10 CB300 ribbed steel bar at 14,850 VND/kg.

Vietnam-America Steel (VAS) price, with CB240 coil steel at 14,410 VND/kg; D10 CB300 ribbed steel at 14,260 VND/kg.

Pomina steel price, with CB240 coil steel stable at 14,890 VND/kg; D10 CB300 rebar steel at 15,300 VND/kg.

Steel prices in the South

Hoa Phat steel price, with CB240 coil steel line at 14,340 VND/kg; D10 CB300 ribbed steel bar at 14,530 VND/kg.

Pomina steel price with CB240 coil steel line is stable at 14,790 VND/kg; D10 CB300 rebar steel is at 15,300 VND/kg.

Viet My Steel (VAS), with CB240 coil steel at 14,160 VND/kg; D10 CB300 ribbed steel at 14,260 VND/kg.

Tung Ho Steel, with CB240 coil steel line at 14,260 VND/kg, with D10 CB300 ribbed steel line at 14,410 VND/kg.

Information is for reference only, actual prices will vary by location!

Source: https://congthuong.vn/gia-thep-hom-nay-ngay-1132024-ky-vong-san-luong-tieu-thu-thep-va-gia-thep-se-duoc-cai-thien-307861.html