Vina One Steel Manufacturing Corporation (Vietnam)

The subject specializes in manufacturing and trading types of steel products (mainly used in construction, metal fabrication, indoor/outdoor furnishing, precision engineering, etc.). Finished products are consumed in both domestic and foreign markets.In the final months of 2021, steel manufacturing companies benefited a lot from an increase in steel prices because construction & investment demand recovered as soon as the Covid-19 pandemic was controlled and this trend lasted until the first months of 2022. However, the appearance of geopolitical tensions in the world has made the global economy fall into a recession since the second half of that year. Along with the frozen real estate market, this has posed significant pressure on steel prices (especially for construction steel prices).Operating in the steel industry, the subject and other steel manufacturers were affected by unfavorable market movements because steel prices continuously decreased. The recovery in steel prices is dependent on the recovery in the economic situation, especially for the real estate market. Until Oct 2023, many steel companies still suffered from price pressure. However, the steel consumption gradually recovered in Nov and Dec 2023. According to Vietnam Steel Association (VSA), it is forecast that in 2024, steel production and consumption could reach 29 million tons and 21.67 million tons, up by 6.7% and 7.4% respectively compared to 2023. The recovery is expected to be driven by changes in real estate policies, an increase in public investments, and more projects to be implemented.