Hoa Phat's steel consumption in november increased again

Hoa Phat's steel consumption in november increased again

Steel NewsDate: 08-12-2023 by: Ngoc Cam

After a slight decrease in October 2023, Hoa Phat's consumption of construction steel and high quality steel increased again in November 2023 due to the revival of demand for construction steel and partly from measures to boost the industry

1. Hoa Phat's operating situation in November

According to the business production report for November 2023 from Hoa Phat Corporation, crude steel production output reached 635,000 tons, equivalent to the previous month.

Sales output of HRC products, construction steel, high quality steel and billets reached 709,000 tons, up 12% compared to October 2023. For HRC products, consumption in November 2023 recorded 270,000 tons, high quality steel reached 410,000 tons, increasing by 21% compared to October 2023.

In addition, in November 2023, Hoa Phat also provided 37,000 tons of galvanized steel sheets and 73,000 tons of steel pipes of all kinds to domestic and foreign markets.

Accumulated in the first 11 months of 2023, Hoa Phat produced more than 6 million tons of crude steel, sales volume reached 6.96 million tons. Of which, construction steel and high quality steel reached 3.3. million tons, down 15% compared to November 2022. Export activities of these types of steel contributed 695,000 tons.

2. Expectations for global steel recovery in 2024

Hoa Phat's steel consumption output in November 2023 recorded growth in the context of the Vietnamese and world steel industry is showing positive signs.

According to forecasts of the World Steel Association, global steel demand in 2024 is expected to recover by 1.9% compared to 2023, reaching 1.8 billion tons. In particular, the EU and Indian markets recovered by 5.6% and 7.5%, respectively, compared to the same period. Global steel supply is expected to decrease slightly by 1% due to the impact of China implementing a plan to cut production by 2% in 2024. This also affects global steel prices as it is expected to increase slightly by 3.5% compared to 2023 due to tight supply.

China accounts for more than 50% of the world's annual steel production. In the first 9 months of 2023, the country's steel supply increased by 0.9% over the same period thanks to the recovery of blast furnaces in Tangshan. In addition, the Chinese government is also extending production cut measures to support the domestic steel industry's recovery.

Furthermore, the Indian steel industry, accounting for 7% of the world steel market share, also recorded a supply growth of over 10% in the context of the country's government increasing investment in infrastructure construction to serve economic development.

3. Prediction of Vietnam steel situation in 2024

In Vietnam, steel demand is expected to increase strongly again when the real estate market gradually recovers from 2024. In the latest report of MB Securities (MBS), it is forecasted that in 2024, domestic construction steel prices will recover to 15 million VND/ton (up 8% compared to 2023). Coal and ore raw material prices are expected to decrease slightly by 7% and 6% in 2024 due to stable supply and decline in China's demand for crude steel production.

For the export market, recovering demand in the EU and US has a positive impact on output and price of exported galvanized steel sheets. Steel export prices are expected to increase by 9% in 2024, helping the gross profit margin of steel export enterprises improve.

Above is the latest news about the Vietnamese steel market in general and Hoa Phat Group in particular. For all updated information about the steel industry in Vietnam and the world, readers can find out more details at the MRS Steel website.