Vietnam's Steel Industry Set for Q3 Profit Boom
Vietnam's steel industry is set to report impressive profits in Q3, with leading companies like Hoa Sen and Hoa Phat poised for significant growth. The industry is expected to benefit from increased demand and improved market conditions.
Hoa Sen, a major player in the sector, is forecast to report a whopping VND260 billion ($9.85 million) in profit for Q3, marking a staggering 244% increase year-on-year. This remarkable performance is driven by a surge in demand for construction steel and HRC (hot rolled coil), which together account for 65% of total steel volume in the quarter.
The increased demand is attributed to a 10% year-on-year rise in construction steel consumption, fuelled by a recovery in the real estate sector and growth in public investment. HRC consumption is also expected to grow by 48% year-on-year in Q3, reaching 1.7 million tons. This growth is further boosted by potential controls on wide-format HRC imports from China, which is expected to improve the market share of domestic producers like Hoa Phat and Formosa.
The analyst behind these predictions, Anh Dinh Ha of MB Securities, anticipates that Vietnamese steel companies will continue their strong performance into Q3/2025. Hoa Sen is expected to see a remarkable increase of over 200% in profit, while other major companies such as Hoa Phat, Ton Dong A, and Nam Kim are predicted to post double-digit profit growth.
The steel industry's gross margins rebounded significantly in Q3 due to stable steel prices and lower input costs. With steel prices seeing a modest recovery, rising 2% for HRC and 3% for construction steel quarter-on-quarter, the outlook for the industry remains positive. As demand continues to grow and market conditions improve, Vietnamese steel companies are well-positioned for further success.
