Viet Dragon Securities - 2024 Steel industry – Output sales to recover

Report

Viet Dragon Securities

Thach Lam Do

2024 Steel industry – Output sales to recover

• 2024 marks the recovery in output of Vietnam's construction steel market, with consumption recorded significant growth and reached 15.8% YoY, supported by the recovery of civil and infrastructure construction activities. Flat steel products for construction activities (galvanized steel sheets, steel pipes) maintained output growth, in addition to domestic demand, these products also recorded demand from foreign markets (major markets including ASEAN, EU and the US).
• Hot-rolled coils recorded the same output as in 2023, in which the domestic market (accounting for 62% of total output) faced competitive pressure from China's HRC imported into Vietnam; the export market is also facing difficulties due to trade remedy activities in the EU market in 2H2024.
• To address the risks related to China's increasing steel exports, the Ministry of Industry and Trade has taken anti-dumping investigation measures to protect domestic manufacturers, with: 1/ Decision No. 1535/QD-BCT (AD19) on galvanized steel products originating from China and Korea; 2/ Decision No. 1985/QD-BCT (AD20) on hot-rolled steel products originating from China and India. In the base case scenario, we assume that dumping duties (temporary) will be imposed on flat steel products (HRC, galvanized sheet) in Q1/2025.

16/12/2024 5 EN

Provider

Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”

See profile

Analysts

Thach Lam Do

Other Reports from Viet Dragon Securities

Phuong Nguyen

Phuong Nguyen

STRONG VOLATILITY

The market experienced a sharp decline during the trading session but found support at the 1,140 point area and rebounded, forming a Dragonfly Doji candlestick. Liquidity increased sharply compared to the previous session, indicating that bargain-hunting cash flow was active and absorbed supply when the market fell deeply. The Dragonfly Doji candlestick is helping the market regain balance after the deep correction. Lingering selling pressure may still appear in the next trading session, but it is expected that the market will quickly find support and recover, with the target of testing the ...

April 23, 2025 April 23, 2025 10 EN

Hien Le

Hien Le

DCM - The thrust from selling price is not strong enough

We value DCM shares using two methods: discounted cash flow (DCF) and sum of the parts (SoTP), with equal weighting of 50:50. The results indicate that DCM's long-term fair price is 34,500 VND/share, which corresponds to the projected P/E ratios of 12.6x for 2025 and 13.1x for 2026. By adding a cash dividend of 2,000 VND/share, the total expected profit is set to reach 17%. • DCM is the second largest urea fertilizer company in Vietnam, with an average market share of 26-30% nationwide and dominating the Mekong Delta region with a market share of 60-65%. • DCM's growth is centered on its b...

April 22, 2025 April 22, 2025 32 EN

Phuong Nguyen

Phuong Nguyen

RETESTING THE 1,200 AREA

The market continued to decline following selling pressure from last weekend but is temporarily still finding support at the 1,200 point area. Liquidity decreased compared to the previous session, indicating that supporting cash flow remains cautious ahead of investors' profit-taking and portfolio restructuring activities. Although the market continues to be supported at the 1,200 point area, recovery efforts are still quite weak. It is expected that the market will need more time to test supporting cash flow in this area; in case of overselling, the support area will be the 1,185 point area...

April 22, 2025 April 22, 2025 10 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

2024 Steel industry – Output sales to recover

STRONG VOLATILITY

DCM - The thrust from selling price is not strong enough

RETESTING THE 1,200 AREA

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe