Analyst Pin-board Steel industry – Weak demand is pulling down selling price and output
- Steel prices and raw material prices increased sharply when the Russia-Ukraine war broke out but prices quickly cooled down in June and July. Steel price decline trend is weakening and showing signs of reversal. However, the regain momentum during in the second half of the year could be not strong due to high inflation globally.
- Vietnam's steel industry struggled due to weak demand in 1H2022. Cash flows into the real estate market have slowed down and the disbursement of public investment was slow. High inventory pressures forced factories to both cut capacity and compete fiercely on selling prices, pulling the price level down further.
- The changes in trade policies of major markets such as the US and the EU to be more challenged to Vietnam.
- Construction steel could recover faster than flat steel. Infrastructure investment in the ASEAN region will underpin steel demand growth in 2022 and 2023 with the highest growth rates compared to other regions globally. Flat steel demand is expected to remain weak over the next few quarters due to high inflation.
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.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.