(HSV VIETNAM GROUP) - At the end of the first quarter of 2024, leading steel industry enterprises such as Hoa Phat Group (HPG), Hoa Sen Group (HSG), Nam Kim Steel (NKG)... all recorded impressive growth results thanks to recovering demand from both domestic and export markets. Moreover, these "big men" also simultaneously threw "iron fists" this year.
Most securities companies gave optimistic reports for the steel industry. SSI Securities forecasts that total steel consumption this year will increase by more than 6% compared to 2023, of which domestic consumption will reach a growth rate of nearly 7%.
According to Agriseco Securities Company, increasing domestic demand, warming infrastructure and civil construction... will promote the steel industry to prosper.
Rong Viet Securities also expects that Vietnamese steel enterprises will continue to record positive growth in domestic sales volume this year, especially in the second half of the year.
In particular, demand from infrastructure construction activities after the land acquisition and site clearance phase, key infrastructure projects such as North-South expressway, ring road... will need to consume construction steel, thereby being a supporting factor for the domestic market. On the other hand, the recovery also came from the fact that a part of civil real estate projects and public investment projects began to accelerate, helping to improve demand for steel.
By the end of the first quarter of 2024, leading enterprises in the steel industry such as Hoa Phat Group (HPG), Hoa Sen Group (HSG), Nam Kim Steel (NKG)... all recorded impressive growth results thanks to recovering demand from both domestic and export markets. Moreover, these "big men" also simultaneously threw "iron fists" this year.
Dong A Ton Joint Stock Company recently announced plans to continue investing in a galvanized steel sheet factory with a design capacity of 1.2 million tons/year. Accordingly, the Company will increase its total production capacity to exceed 2 million tons/year. It is expected that the process of implementing the new factory will last 6-8 years from the time the investment license is granted, divided into four phases with a total investment of 10,000 billion VND.
Ton Dong A is currently in the group of three large enterprises in the field of galvanized steel export in Vietnam with 15.5% domestic market share. The company is managing and operating two galvanized steel factories in Song Than 1 and Dong An 2 industrial parks in Binh Duong province, with a total maximum capacity of 850,000 tons/year.
Or Hoa Phat Group, according to the updated schedule until April 2024, the Dung Quat 2 project has been accelerated, reaching over 50% of all main items. The items of iron smelting plant, steel smelting plant, and HRC steel rolling plant have taken shape, about 50-70% structurally completed.
It is expected that the factory will be completed in the first quarter of 2025 with a capacity of 1.5 million tons/year for phase 1. The total design capacity of this project is 5.6 million tons/year, including 4.6 million tons of HRC hot rolled steel and 1 million tons of special steel.
This project was once described as an "iron fist" by Mr. Tran Dinh Long, Chairman of Hoa Phat, with a total investment of up to 85,000 billion VND. Bao Viet Securities estimates that, when running at maximum capacity, the Dung Quat 2 project will contribute about 80,000-100,000 billion VND in revenue to Hoa Phat.
Nam Kim Steel is also preparing to restart the Nam Kim Phu My roofing steel factory project, which will have a galvanizing line of 350,000 tons/year, two aluminum-zinc alloy plating lines of 300,000 tons/year and 150,000 tons/year. Chairman of Nam Kim Steel, Mr. Ho Minh Quang shared that 2024 will be a pivotal year for the company to move deeper into the value chain of the galvanized steel industry when the company decides to invest in the Nam Kim Phu My factory project with a total investment of 4,500 billion VND.
Even though you're at a loss, in debt... Pomina Steel still has the ambition to operate the blast furnace again in the fourth quarter of 2024 after the shutdown period to anticipate the return of real estate projects that are expected to recover strongly in the last months of the year.
In the market, steel stocks are also attracting cash flow. Especially yesterday's session, June 17, 2024, right from the beginning of the session, steel industry stocks became the focus when they simultaneously exploded, attracting large cash flows. Notable stocks include TIS (up 8%), HSG (up nearly 6%), NKG (3.3%), GDA (up nearly 5%), SMC (up 5.3%), HPG (up more than 1%)….
Steel industry stocks simultaneously fluctuated after the authorities moved to investigate and apply anti-dumping measures on galvanized steel products from abroad.
Ha Diem HSV