Indeco Steel Trading Corporation (Vietnam)

The subject specializes in trading iron, steel for construction. As shared, the subject's products are provided from domestic manufacturers, along with imported from Hong Kong, Japan. All products are distributed in domestic market only.Besides a few steel enterprises with positive business results in the third quarter of 2023, most of them still reduced profit growth or losses. Although the big giant - Hoa Phat reported a sharp increase in profit in the third quarter compared to the same period, the 9-month profit was still at the bottom level within the last 8 years. According to data from the Vietnam Steel Association (VSA), steel consumption in September began to show signs of improvement when consumption output reached 2.2 million tons, up nearly 5% over the same period. This was the first month of the year to record growth in finished steel sales compared to last year. Of which, construction steel accounted for nearly half of the proportion, increased by 4.2%. Hot-rolled steel consumption increased the most by nearly 34%.On the other prospect, the real estate market has not been vibrant enough to stimulate demand for construction steel, leading to the possibility that steel consumption will depend heavily on the implementation of key public investment projects in the country. Slow disbursement of public investment capital will be a big risk for the steel industry by the end of 2023. At the same time, steel selling prices are also lacking supportive motivation. Weak demand is the main reason why steel prices have dropped continuously in the past two quarters. This trend is forecast to continue in the last quarter of the year.