Bac Nam Steel Joint Stock Company (Vietnam)

The subject - Bac Nam Steel Joint Stock Company is an associate of Tien Len Steel Group specializing in producing all kinds of steel. The subject's major business activity is manufacturing and processing steel plate, shaped steel (U,I,V). The subject imports mainly from foreign countries such as Hong Kong, China, India, USA... As shared by the subject's staff, its products are supplied majorly for the domestic market. In addition, it also exports products to Cambodia.In 2022, the steel industry suffered from unfavorable market conditions. This issue was caused by Russia - Ukraine war, China's Zero - Covid policy and tight monetary policy in many countries around the world due to deep impact of inflation pressure and global economic recession. In Vietnam, the State also tightened capital flows into real estate as well as building materials industries. Accordingly, steel price continuously decreased and even reached the bottom.Steel production and consumption in the first 6 months of 2023 continued to decline, 20.9% and 17.5% respectively compared to the same period in 2022. Meanwhile, the imported steel is still "massively" flooding into Vietnam. Steel from China accounts for 54.17% of total imported steel output...The Vietnam Steel Association (VSA) said that the reason domestic steel prices are continuously decreasing is due to slow consumption demand. In particular, the slow consumption of construction steel comes from the fact that the real estate market is still gloomy and public investment has not prospered. Not only that, the domestic steel businesses also have to compete with cheap steel from China when this country continuously lowers export steel prices. It is forecast that from now until the end of the year, the steel consumption will still be poor and there may be many more price reductions.