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According to an estimate, the total steel inventory of the Vietnamese enterprises on the stock exchange is worth about 61,000 billion dong (approximately 2,5 billion USD). Compared to the beginning of the year, the total inventory suddenly dropped sharply by VND 7,000 billion, which is also the lowest milestone in the past nine quarters.Vietnamese enterprises simultaneously reduce steel inventoryUntil now, all Vietnamese steel enterprises have announced their business performance in the second quarter of 2023, and an overview of the domestic steel industry in the first half of 2023 is gradually revealed. According to statistics, the total Vietnamese steel inventory on June 30 was only about VND 61 thousand billion dong ( ~ 2,5 billion USD). Compared to the inventory in the first quarter, the current inventory has sharply decreased by 7000 billion VND (289 million USD). This is also the lowest since the first quarter of 2021.In fact, after the period when inventories peaked at more than 110,000 tons in the second quarter of 2022, the domestic steel enterprises actively reduced their stockpiles. The top three steel companies showed a substantial decrease in inventories, including Hoa Phat, Nam Kim, and Hoa Sen with a decrease of 2300 billion dong, 1250 billion dong, and 1150 billion dong.The steel inventory of Vietnamese enterprises quarterly from 2021 to 2023Specifically, Hoa Phat reported that the steel inventory on June 30 was only 32,261 billion VND, a slight decrease of 7% compared to the first quarter of 2023 and 50% lower than last year. Similarly at Nam Kim, steel inventory was recorded at VND 5,380 billion and decreased by nearly 27% compared to the first quarter of 2023. Inventories at Hoa Sen also showed a sign of decrease to VND 6,200 billion, down 10% compared to the end of Q1/2023 and halving against the end of Q2 last year.Beyond the top 3 giants in the steel industry, the inventory of most other steel companies such as VNSteel, Tisco, SMC, etc. is downward. It is known that the increasing steel price trend in the first 3 months of the year has partly made businesses reduce the provision for devaluation of inventories. However, the price trend showed signs of reversal, and it continued to decrease since April, which again has caused many steel enterprises to be under pressure to prevent the devaluation of inventories soon.The prospects for recovery of the Vietnam steel industryAlthough currently, the amount of steel inventory at enterprises has decreased, this data does not precisely reflect the situation of domestic steel consumption. Weak demand has remained unsolved since the beginning of the year, especially when the real estate market still has not had many remarkable projects.The chart shows the total Vietnamese steel inventory from 2021 to 2023According to information from the Vietnam Steel Association (VSA), in the first half of this year, sales of finished steel products reached nearly 12.5 million tons and decreased by 17.5% over the same period in 2022. The total 80% of steel sources consumed in the domestic market come from HRC and construction steel. The rest are galvanized steel and steel pipes. The weak demand for steel with the surplus of goods at factories has led businesses to lower prices to stimulate consumption continuously.Vietnam's export market in the first half of 2023 is considered to be unexpected. The cause is directly due to weak consumption demand and competitive pressure from Chinese steel sources. HRC and galvanized steel products are still the primary sources of export goods. However, the sharp decline in steel demand in many places worldwide has led to a decrease in Vietnam's export steel output. Besides, domestic enterprises also have to compete for cheap steel products from Chinese enterprises when this country continuously lowers export steel prices.In the gloomy context of the current civil construction projects in the real estate market, many steel enterprises expect public investment projects to stimulate the demand. Assessing the prospect of steel recovery, VSA believes that the steel demand can recover significantly and have strong transitions in the period 2023 - 2024. Thereby the recovery will help the profit margins of businesses in the industry improve positively. 

According to the General Department of Customs, in July 2023, Vietnam exported 900,000 tons of iron and steel to countries around the world, the ASEAN countries including Cambodia, Malaysia, Indonesia, Philippines, Thailand, Singapore, Myanmar, and Laos. In the first 6 months of 2023, Cambodia was the second-largest iron and steel import market from Vietnam after Italy.1. ASEAN is still the primary export market of Vietnam's steel industryAccording to the General Department of Customs statistics, in July 2023, Vietnam exported 900,000 tons of iron and steel, reaching 658 million USD, up 47.8% in volume and 3.1% in iron and steel export value, compared to the same period in 2022. Accumulating the first 7 months of 2023, Vietnam exported 6.28 million tons of iron and steel, reaching 4.91% billion USD, up 16.2% in volume.According to data from the Vietnam Steel Association (VSA), in the first 6 months of 2023, Italy was the largest iron and steel import market with a total value of up to 650 million USD. Cambodia and the US reached 394 million USD and 386 million USD, respectively.Currently, ASEAN is still Vietnam's primary steel export market, in which iron and steel exports in the first half of 2023 to Malaysia reached 308 million USD, followed by Indonesia with 212 million USD, Thailand hold 3rd position with 153 million USD, Philippines with 87 million USD, Singapore with 41 million USD, Myanmar with 6.9 million USD and Laos with 23 million USD.2. The situation of applying ASEAN trade remedies2.1. MalaysiaAmong ASEAN member states, Thailand, Malaysia, Indonesia, and the Philippines are adopting trade remedies. According to WTO statistics, in the first half of 2022, Malaysia investigated a total of 115 cases and applied 70 trade remedies. Currently, Malaysia is applying trade remedy measures with 7 steel products of Vietnam including galvanized steel, cold rolled steel, aluminum zinc alloy coated steel,... In 2022, Malaysia conducted an anti-dumping policy on 2 cold-rolled/non-alloy steel products with thickness from 0.2-2.6mm and width from 700-1300mm from Vietnam.2.2. IndonesiaSince 2021, Indonesia has not initiated a new trade remedy investigation with Vietnam. According to statistics by the end of June 2022, the country has investigated a total of 182 cases and applied 95 trade remedy measures against goods imported from abroad, but there are no cases related to steel imported from Vietnam.2.3. PhilippinesAccording to WTO statistics, by the end of June 2022, the Philippines has investigated a total of 115 cases, including 3 cases related to galvanized steel, aluminum zinc alloy, and coated steel products imported from Vietnam. According to the latest updated import data, the Philippine Department of Trade and Industry (DTI) announced to stop investigating the above 3 global safeguard cases due to the insignificant import volume, which is eligible for a license. Excluded from the safeguard measures of the Philippines according to the regulation. Therefore, Philippine steel importers can continue to benefit from cheap and quality Vietnamese steel sources without being negatively affected by the government's defense policy.2.4. ThailandAs of June 2022, Thailand has investigated a total of 105 cases and applied 66 trade remedy measures against imported goods. Thailand has investigated 08 cases related to Vietnamese exports, including 06 anti-dumping and 02 self-defense. The products under investigation include hot-rolled non-alloy steel plates in coils and without coils; welded steel pipes and tubes, stainless steel pipes; color-coated corrugated iron; cold-rolled and cold-rolled carbon steel in coils or not coils. In 2022, Thailand conducted the end-of-term review of 02 anti-dumping cases, including the case of galvanized aluminum-zinc alloy steel, color-coated steel, and stainless steel pipes.On June 7, 2023, the Department of Foreign Trade of Thailand (DFT) issued the conclusion in two cases of sunset review of the anti-dumping duty order on galvanized steel and aluminum-zinc alloy-coated steel imported from Vietnam.Thailand ended the anti-dumping duty for Certain Hot Dip Plated or Coated with Aluminum Zinc Alloys of Cold Rolled Steel (GL).For Painted Hot Dip Galvanized of Cold Rolled Steel and Painted Hot Dip Plated or Coated with Aluminum Zinc Alloys of Cold Rolled Steel (PPGI/PPGL), DFT extended anti-dumping measures valid for 5 years at 4.3-60.26% of the CIF price.The list of Vietnamese color-coated steel exporters involved in this incident includes:Hoa Sen Group Joint Stock Company (HSG)Nam Kim Steel Joint Stock Company (NKG)Ton Hoa Phat One Member Co., LtdTon Dong A Joint Stock Company (GDA)Dai Thien Loc Joint Stock Company (DTL)Vnsteel Thang Long Coated Steel Joint Stock CompanyMaruichi Sun Steel Joint Stock CompanyNS BlueScope Vietnam Co., Ltd.Southern Steel One Member Company LimitedFujiton Color Coated Steel Joint Stock Company 

Khuzestan steel mill has been forced to halt operations and put workers on mandatory furloughs due to the power shortage crisis in Iran.Khuzestan steel mill is considered one of Iran's three "rich man steel industries" and owns many production lines manufactured by German, Italian, and Japanese companies. The closure of Khuzestan was initiated after production activity decreased due to intermittent power outages.Khuzestan steel mill in Khuzestan Province, located in southwestern Iran, has large oil reserves where people struggle with hot weather and frequent power outages. Accordingly, the factory will lose about 15 million dollars every day after shutting down. However, according to statistics, the loss does not stop there because many businesses in different fields that depend on the steel industry also suffer losses.The company's CEO, Amin Ebrahimi, shared that the plant is being repaired and maintained regularly to meet production needs, but he did not confirm the shutdown of the Khuzestan steel mill. He cited the Department of Energy when it announced a 29% increase in electricity supply to steel mills, claiming it would boost production.According to the newspaper, at the beginning of 2023, Iran's steel production had plummeted due to severe electricity and gas shortages. Iran is always in the world's top 10 major steel exporting countries; however, in March 2023, Iran was removed from this list. Steel is one of the leading export items that bring in foreign currency for Iran in the context of oil and gas subject to US sanctions.Accordingly, with the ongoing shortage of electricity, gas, and water in Iran, Iran implemented a two-day shutdown of businesses and steel mills across the country in early August. Besides, with hot weather causing increased demand for electricity for cooling, hydroelectric power plants produce electricity beyond their capacity, leading to the depletion of water resources. The continuous increase in temperature and decrease in rainfall across the country has adversely affected the operation of hydroelectric power plants, which is also the reason for the steel mill's closure.The steel mill shutdown results from a gap between electricity production and consumption. Currently, the shortage of electricity not only affects people's daily lives but seriously affects critical industries, including steel production. The lack of gas raw materials resulted in a sharp decline in Iran's steel production, and nearly 50% of the electricity supply to industries was also cut.Although power plant capacity and fuel supply are insufficient to meet domestic demand, Iran still exports electricity to Iraq. The export of electricity through Iraq has overloaded the country's power grids and failed to meet its growth plan as expected. Iran's shortage of electricity, water, and gas is not only solved by shutting down steel mills but also needs to find a more optimal and sustainable solution.AG真人游戏 Steel has brought you information about the shutdown of Iran's Khuzestan steel mill. If you need to buy steel products, please contact us here.

According to a report by the General Department of Vietnam Customs, the total import and export value of Vietnam's goods in July reached 57.97 billion USD, up 2.3% compared to June 2023. The total export value reached 30.07 billion USD, up 2.1% and the total import value reached 27 billion USD, up 2.4%. The export value of iron and steel of all kinds increased by 118 million USD, and the import of iron and steel in July increased by 66 million USD.1. General assessment of Vietnam's import and export situation in July 2023According to data from the General Department of Customs, the total import-export value of Vietnam's goods in July 2023 reached $374.36 billion, down 13.8% over the same period last year. In which, the total export value was 195.42 billion USD, and the total import value was 178.95 billion USD.Regarding the export market, the United States still holds the No. 1 position with an estimated turnover of 52.4 billion USD. In the first 7 months of 2023, the trade surplus to the US was estimated at 44.3 billion USD, down 24.1% over the same period last year. In addition, the EU and Japanese markets,... are also significant partners of Vietnam with a trade surplus to the EU estimated at 16.4 billion USD, and a trade surplus to Japan reached 0.9 billion USD.Regarding the import market, China is still the largest partner of Vietnam with a total estimated turnover of 58.6 billion USD. Besides, the trade deficit from Korea reached 15.5 billion USD, down 25.1%, and the trade deficit from ASEAN was 5 billion USD, down 35.3%.2. Vietnam's steel export situation in July 2023The total value of Vietnam's exports in the 2nd period of July 2023 reached 16.18 billion USD, up 17.2% compared to the 1st period of July 2023, fluctuated in a number of commodity groups such as phones of all kinds and components increased by 1.16 billion USD (equivalent to an increase of 70.6%), machinery, equipment, tools and spare parts increased by 351 million USD (equivalent to a rise of 22.1%), textiles and garments increased by 169 million USD (equivalent to an increase of 1.16 billion USD). 10.9%), iron and steel of all kinds increased by 118 million USD (equivalent to 38.4%).The export of HRC products in July 2023 is estimated at 346 thousand tons. The high output of hot rolled coil in the past month was thanks to the positive signal of HRC demand in the market, especially in Europe and Asia. Besides, Vietnam also takes advantage of commitments in the FTA Agreement and Certificate of Origin to open more export markets for iron and steel products. According to the Ministry of Industry and Trade, steel exports to the EU markets have made many positive developments thanks to the change in trade remedy policies effective from July 1, 2023.3. The situation of Vietnam's steel imports in July 2023According to the General Department of Customs, the total value of Vietnam's imported goods in the 2nd period of July 2023 reached 13.5 billion USD, up 0.9% compared to the first half of July. The items that increased the most were mobile phones of all kinds and components, which increased by 132 million USD (46%). Machinery, equipment, tools, and spare parts increased by 139 million USD (equivalent to 8.2%), maize by 72.6 million USD (equivalent to increased by 139%), iron and steel of all kinds increased by 66 million USD (corresponding to 17%), pharmaceuticals increased by 46.6 million USD (equivalent to 38.4%).Currently, Vietnam still imports iron and steel from China, Japan, and South Korea with key product lines such as flat-rolled products of iron or nonalloy steel, scrap steel, wire of iron or nonalloy steel, in coils (excluding bars and rods),鈥�4. Vietnam has stepped up negotiations and signing of agreements, commitments, and associationsAccording to the Ministry of Industry and Trade, the decline in steel imports and exports in the first 7 months of 2023 is because significant export partners of Vietnam such as the United States and the EU reduce investment in real estate construction works. ...Besides, the price of export goods tends to decrease sharply, such as iron and steel, down 24.8%. In addition, the reopening of China also increases competitive pressure on Vietnam's exports of the same type.In the coming time, the Vietnamese government plans to step up negotiations and sign new agreements, commitments, and trade links to diversify markets, products, and supply chains and boost exports. At the same time, the Ministry of Industry and Trade also strengthens early warning of trade remedy lawsuits and guides measures to respond to investigations to protect the interests of manufacturers and importers.

KIS Vietnam Securities Joint Stock Company believes that the steel industry will face many difficulties in 2023 if sales volume does not grow significantly.In the newly updated report, KIS Securities said that the revenue growth rate in the second quarter of 2023 of steel enterprises on the stock exchange decreased by 27.7% over the same period last year.The top nine steel companies in Vietnam all had negative growth. Hoa Phat recorded negative revenue growth of 21.1% over the same period last year. This is also the leading enterprise in the steel industry due to its dominant position. Similarly, Nam Kim also had negative revenue of 23.5%, while Hoa Sen had the most profound drop in revenue with negative growth of 29%.Although domestic demand is low, the number of products exported to other countries is relatively high. Strong growth of the steel industry through the export channel was seen in the total export volume of 2.1 million tons, up 25% year-on-year. Particularly for HRC products, 1.1 million tons have been exported, an increase of 128% over the same period last year and nearly 55% compared to the first quarter of 2023.In terms of profit, the growth momentum of total profit in the second quarter of 2023 for nearly half of the 24 Vietnamese steel enterprises recorded a decline. Total net profit reached 498 billion dong, down 89% over the same period last year but up slightly by 7% compared to the previous quarter.However, nearly half of the listed steel companies suffered losses in the second quarter. Among the top 9 enterprises in the steel industry, Nam Kim has the highest revenue, with a profit of 125 billion dong after losses in the previous 3 quarters, while Hoa Sen only has a profit of 14 billion dong. Hoa Phat's net profit dropped 64% over the same period last year (1,447 billion dong) but recovered significantly compared to the first quarter.KIS also forecasts that difficulties and challenges for the steel industry will still be present in the third quarter when the domestic market's demand is still fragile due to the rainy season's impact, and the product's selling price will affect the margin. Enterprise profits. The export channel is still a bright spot for steel enterprises. It is forecasted that the total consumption volume in the third quarter may decrease by 9% compared to the previous quarter to 5.8 million tons.For input materials, KIS believes that input prices of steel industry materials will increase due to positive signs from the Chinese market. However, the output prices of steel products will not increase at the same rate as the market input prices. Therefore, the profit margin of steel producers will be slightly affected by falling selling prices but will remain flat in the third quarter thanks to low and stable input material costs. KIS forecasts that the HRC price recovery in the third quarter will positively affect the revenue and profit of companies from the end of September and throughout the fourth quarter of this year.KIS said that the steel industry is still facing many difficulties in the context of decreasing market demand. In addition, slowing global economic growth and domestic issues related to the bond and real estate sectors may further threaten the industry's business results, and weak demand will remain a significant concern this year.

Recently, the Trade Remedies Department has just received information that Morocco has issued a conclusion to review safeguard duties on imported hot-rolled steel for products with HS codes 72.08, 72.11.13, 72.11.14, 72.11.19, 72.25.30, 72.25.40, 72.26.20.00.11, 72.26.20.20, 72.26.20.05, 72.26.20.052.72.26.20.00 .59, 72.26.91 and 72.26.99.980.00. Vietnam's hot-rolled steel continues to be exempt from Morocco's safeguard duty because of a developing country with negligible imports.1. Morocco imposed a safeguard duty of up to 25% on imported hot-rolled steelAccording to data from the General Department of Trade - Ministry of Industry and Trade of Morocco, the country's imported hot-rolled steel output reached 107,213 in 2018, an increase of 32,725 tons compared to 2014. In addition, only in the first 7 months of 2018, Morocco imported 79,371 tons of HRC, equal to 74% of the total output of the previous year. The massive import of hot-rolled steel pushed domestic manufacturers to bankruptcy when production and consumption of hot-rolled steel plates decreased by 19.4% and 28% in 2017 and 2018, respectively.Faced with concerns about dumping by foreign importers causing difficulties for the domestic steel market, Moroccan authorities have initiated a safeguard investigation into hot rolled steel imported into the country on May 29, 2019. The products under investigation fall under the following HS code groups: 7208, 7211.13, 7211.14, 7211.19, 7225.30, 7225.40, 7226.20.00.11, 7226.20.00.21, 7226.20.00.30, 7226.20. 00.40, 7226.20.00.51, 7226.20.00.52, 7226.20.00.59, 7226.91, 7226.99.90.91 and 7226.99.90.99.On October 22, 2019, the Moroccan government announced the imposition of a temporary safeguard duty of 25% on imported hot-rolled steel plates, effective for 200 days. After the sunset review, on June 19, 2020, the Moroccan government imposed a definitive anti-dumping duty on products with the above HS code group for a period of 3 years at a duty rate of 25%.Some developing countries, including Vietnam, are exempt from duty because of their negligible import volume. On May 3, 2022, Morocco sent a notice to the WTO approving a request to reduce the safeguard duty rate on imported HRC products by 1% each subsequent year.2. Vietnam hot rolled steel is not subject to Morocco's safeguard dutyOn May 25, 2023, Morocco conducted a sunset review of safeguard measures for imported hot rolled steel products and decided to maintain the duty rate of 23% from June 19, 2023, to June 18, 2026, but reduce 1% each subsequent year. However, Vietnam continues to be excluded from the safeguard measure because of a developing country with negligible import volume.According to World Trade Organization (WTO) statistics, by the end of 2021, Morocco has conducted 17 anti-dumping investigations and 12 global safeguard cases against imports into the country. 3. Advantages of importing hot rolled steel from VietnamVietnam has a self-sufficient source of hot rolled steel to serve domestic and export demand with a total production capacity of 12.8 million tons/year. All products are manufactured according to modern continuous casting and rolling production lines, which can reach a minimum thickness of 1.2 - 2mm to meet many international standards such as JIS, MS, SAE, BS, EN,...Some fastidious markets such as Europe, the United States, Australia, the UK,... are significant for the certificate of origin, so the autonomy of hot-rolled steel produced in Vietnam has opened up many export opportunities across countries.In addition to product quality, importing hot rolled steel from Vietnam also has the advantage of cost optimization due to cheap labor and abundant raw materials. Data from the General Department of Vietnam Customs said that steel export output in April 2023 reached 973,549 tons of iron and steel, reaching 812 million USD, up 11.4% and 18% respectively over the previous month. In the first 4 months of 2023, Vietnam exported 3.25 million tons of iron and steel with a value of 2.52 billion USD, up 0.6% in volume.Importing hot-rolled steel from Vietnam into Morocco is exempt from safeguard duty, helping Moroccan importers access an ample HRC supply at a better price than other exporting countries. For all inquiries about the Vietnam steel market, please contact AG真人游戏 Steel via Email at [email protected] for 24/7 support.

According to a report by the World Steel Association in June 2023, crude steel production in 63 countries reached 158.8 million tons, down 0.1% compared to June 2022. In the context of China's struggling construction sector and the possibility of economic recession in the US and Europe, India is now an essential factor in recovering global steel demand.In June 2023, Africa produced 1.3 million tons of crude steel, an increase of 11.5% compared to June 2022. Countries in Asia and Oceania produced 119.7 million tons, up 0.8%. The EU produced 10.6 million tons, down 11.1%. Other European countries produced 3.7 million tons, down 1.8%. Particularly in the Middle East market, in June 2023, production was 4.2 million tons, up 9.4%. In the North American market in June, production was 9.2 million tons, down 0.5%. Russia, the CIS countries, and Ukraine produced 6.8 million tons, up 5.2%. South American countries reduced production by 12.4% when they only produced 3.3 million tons of crude steel.The World Steel Association has also listed the top 10 countries with the most significant crude steel production in the first six months of 2023: China is the world's largest steel producer, with 91.1 million tons, up 0.4% compared to June 2022. India is emerging as a new steel power with 11.2 million tons, an increase of 12.9% compared to June 2022. The third place belongs to Japan, which produced 7.3 million tons, down 1.7%. US production of 6.8 million tons increased by 0.5% compared to 2022. Russia is also one of the significant crude steel producers in the world; it is estimated to have produced 5.8 million tons, up 3.8%. Korea produced 5.5 million tons, down 0.9%. Germany produced 2.9 million tons, down 8.4%. Iran has the most robust steel production increase, which increased by 17.4% compared to June 2022, with an output of 3.2 million tons. In contrast, Brazil was the country with the most significant decrease in crude steel production in June 2023, when it decreased by 12.5% to only 2.6 million tons. Turkey is the last country on the list of the top 10 countries with the world's most significant crude steel production, producing 2.9 million tons, down 1.5%.In the Vietnamese market, finished steel production in June 2023 reached 2.012 million tons, down 9.52% compared to May 2023 and down 16.2% over the same period in 2022. Particularly for Hoa Phat Group, in June 2023, it produced 520,000 tons of crude steel, down 23% compared to the same period in 2022. Hot-rolled coil products, which are the strength of Hoa Phat Dung Quat Iron and Steel Production Complex, produced 251,000 tons of hot-rolled coil in June 2023, up 24% over the same period last year and hitting the highest level since November 2022.

In the second quarter of 2023, VNSteel lost VND 255 billion, along with the net revenue decreased by 29% compared to the same period last year. Besides, the company also recorded a loss of 324 billion dongs from associated companies in the steel industry.The VNSteel's report has made many investors disillusionedAccording to the report data, VNSteel's net revenue reached 6,754 billion VND, and it decreased 29% over the same period. After deducting the cost price, gross profit was only 94 billion VND and decreased sharply by 57% compared to the previous second quarter. Total net revenue of the first 6 months in 2023 reached 15,097 billion VND, down 31 % compared to the first 6 months in 2022. Similarly, the gross profit index showed negative signals when it reached VND 480 billion in 6 months and decreased by 25% over the same period.Although the revenue in the second quarter was a step down compared to last year, there were still some bright spots in the company's business. Financial revenue in this period increased by 15% compared to last year. Besides, financial and selling expenses were also reduced by 11% and 55%, respectively, compared to the previous quarter.Efforts to cut costs and boost financial activities have not been enough to improve business results. VNSteel's profit after tax in the second quarter of 2023 lost 284 billion and fell sharply by 57% compared to the second quarter of 2022. This result surprised many investors when just 3 weeks ago VNSteel had reported a pre-tax profit of the holding company of more than 133 billion dongs.Steel price fluctuations are the direct cause of VNSteel's difficultiesVNSteel evaluates that the domestic steel market has many challenges. Although the worst time has passed, the domestic demand is gloomy, and the export situation has not made many strong impressions, which has affected the Vietnamese steel enterprises.Since the beginning of the year, the domestic market has experienced 19 corrections in construction steel prices. Specifically, in the first quarter, there were price increases, but from the beginning of the second quarter onwards, the price of construction steel has adjusted 13 consecutive declines. The average price of all steel products in the past 6 months fell sharply from 13.9 to 37% over the same period.Steel consumption is also not very optimistic when finished steel decreased by 30% over the same period, long-rolled steel decreased by 33%, and cold-rolled coil decreased by 24%. In the first 6 months of the year, total sales volume only achieved 38% of the previous strategy. The weak domestic demand and the international steel demand have uncertainties leading to the narrowing of export scope.Outlook for steel industry recovery from the government's supportive policiesAlthough the steel market is still facing many difficulties; However, the period from now to the end of the year is predicted to have many outstanding highlights from the government's supportive policies in the real estate and construction sectors.The National Assembly has approved an economic recovery support package worth 355,000 billion VND, of which nearly 50% of the package value will be spent on infrastructure development such as Long Thanh airport, North鈥揝outh Expressway East, and logistics ports,... The promoting constructive stages is expected to increase the steel consumption demand.In addition, the government approved the project 鈥業nvesting in building at least 1 million social housing apartments鈥� earlier this year. The implementation of housing construction projects is considered a breakthrough to help revive domestic steel enterprises to solve the problems in consumption demand.It can be seen that the current situation of the steel market is still under pressure, but with a series of economic stimulus policies of the government, the domestic steel industry is expected to prosper gradually in the near future. 

Recently, Nam Kim Group announced its latest financial report for the second quarter of 2023. Accordingly, the profit after tax in the first 6 months of the year reached 76,2 billion dong. This is also the first quarter of profit after losing business in the previous quarters.In the second quarter of 2023, Nam Kim Group recorded net revenue of 5,499 billion dong, down 23.6% year-on-year. The cost of goods sold also decreased by 20.6% to 5,004 billion dong, so gross profit decreased by 44.5% to 496 billion dong.Financial revenue for Nam Kim Group decreased by 53.7% to 50,5 billion dong. The company's expenses in the last quarter also decreased, in which selling expenses decreased by 60% to 214 billion dong.Nam Kim's leadership also said that 2023 would be a year of many challenges and not really favorable for growth when domestic market demand is still weak. Countries also strengthen trade protectionist policies to protect the production sources of domestic enterprises, negatively affecting Nam Kim Group's export activities. However, the most difficult period has passed when the business activities of enterprises have had a positive trend.In the second quarter of 2023, Nam Kim's profit after tax reached 125,4 billion dong, down 38% over the same period last year. This is also the first quarter to be profitable again after reporting losses in previous quarters. In terms of business orientation in 2023, Nam Kim Group sets a business target of 20,000 billion dongs in revenue and an expected profit before tax of 400 billion dongs. Thus, at the end of the year's first half, with what has been achieved, Nam Kim Group has completed 49% of the revenue target of 9,874 billion dong and 29% of the year's profit target of 76,2 billion dong. If this result remains unchanged, Nam Kim shares may be traded on margin again in the near future.Nam Kim Group will also optimize the capacity of production lines to increase capacity to 1,2 million tons per year, thereby increasing productivity, reducing production costs per product unit, and increasing capacity enterprise competition.By the end of the second quarter, Nam Kim's total assets reached 12,179 billion dongs, down 9.5% over the same period last year. The company has 950 billion dongs in cash and 134.5 billion in cash equivalents. At the end of the period, financial investment reached 396 billion dongs, investment in trading securities alone reached 120 billion dongs, almost all of which were bonds, and more than 9 billion dongs were invested in 1,174 BID shares.In addition, Nam Kim Group also had 1,885.6 billion dongs of short-term receivables, up 24%. Inventories have decreased by 25.3 billion dongs to 5,385 billion dongs, and Nam Kim has set aside 156.4 billion dongs to reduce inventory prices.On the stock market, after the trading session on July 28 closed, Nam Kim Group shares increased by 0.76% to 19,800 VND/stock, and trading volume reached more than 8,5 million units. 

The Pomina Steel Board of Directors recently announced the decision to sell nearly 70.2 million shares, equivalent to 20% of the Pomina stake to Nansei Steel Japan. Accordingly, the price per share is listed at 10,000 VND (0,42$) and is about 35% higher than the market price. Overview of the dealing Pomina stake eventOn July 14, the  General Meeting of Pomina Steel Shareholders said that the stock issuance process would be divided into two rounds; the first round will take place in August with more than 10.6 million shares, and the remaining shares will be completed in September 2024. However, the Japanese partner will not be allowed to transfer shares for the first 3 years since the transaction started.Nansei Steel is a steel manufacturer and exporter based in Chiba, Japan, this business has just been established in Vietnam for half a year. Answering the news conference, Mr. Inafuku Makoto said that the company has had the opportunity to cooperate with Pomina steel company since 9 years ago. The result of this cooperation is the transfer of a 20% Pomina stake with a value equivalent to 20 million USD.Mr. Inafuku Makoto stated at the general meeting of shareholdersCurrently, Pomina only has one major shareholder Vietnam Steel Production and Trading Co Ltd with an ownership rate of more than 53.3% of the capital, but after completing the offering, Nansei Steel will be the second largest shareholder in Pomina. Some news sources indicated that this money was used to renew working capital as well as to invest in the blast furnace with a capacity of 1 million tons into operation.Transferring Pomina stake is an excellent solution to overcome financial difficultiesPomina is deep into a difficult financial period due to the influence of the domestic steel consumption market from 2022 to the present. Last year, the company made a loss of profit after tax of nearly 1100 billion dong and another 186 billion dong in the first quarter of 2023. According to the management, cooperating and transferring shares with Nansei Steel is the best solution to help the company have enough financial resources to meet market demand in the next half year.According to Pomina's CEO, the Vietnamese steel market in the period 2024 may prosper thanks to public investment; however, the growth percentage in consumption is only from 15 to 20% because the demand for Vietnam's steel consumption mainly comes from the real estate sector. Therefore, also at the meeting of shareholders, Pomina set a revenue target of 9,000 billion dongs this year, and the loss of after-tax was reduced to 150 billion dongs. This figure is much lower than the target set in the previous annual report because the situation of Vietnamese steel in the first half of this year is still gloomy and there are not many strong breakthroughs.In the first half of 2023, although the Vietnam steel market has passed the most challenging period, the recovery rate is still prolonged because the demand for steel is not diversified and only focuses on the real estate sector. However, in the future, the domestic steel consumption market will have more bright spots when Vietnam is promoting investment strategies in automobile manufacturing and renewable energy industries. These two fields have strong steel consumption when most of their parts and components are made of steel to increase sustainability.