Smc Phu My Steel Processing Co., Ltd (Vietnam)

The subject specializes in manufacturing, processing and trading sheet steel products for the construction, transportation, electricity, electronics, refrigeration and household goods industries. The subject imports materials from Philippines, China, Taiwan. Currently, its products are only supplied for domestic market. ABE, N-TECH, NIC METAL, LOCTEK ERGONOMICS are main customers in Vietnam.Due to global economic recession and gloom real estate market, this could not stimulate steel output consumption in 2023. According to a staff of the subject, currently, the company's business situation faces many difficulties due to reduced market demand. The company's number of employees decreased to 120 people from 250 people (compared to the beginning of 2023).From March 2023 to early November 2023, steel product prices had 19 adjustments, decreasing by more than 14%, the price fluctuated around VND 13.7 million/ton, the lowest in the past 3 years. The reason why domestic steel prices continuously decrease is due to slow consumption demand, the number of civil projects being started is small, public investment activities are gradually being promoted but not enough to help the steel market better. Meanwhile, domestic manufacturers still have to compete with cheap steel from China when this country continuously lowers export prices. The Vietnam Steel Association (VSA) believes that public investment and a warming real estate market will positively support steel demand in the last months of the year. Specifically, VSA said that finished steel product production in November 2023 reached nearly 2.5 million tons, up by 3% compared to October and up more than 34% over the same period in 2022. Steel consumption of all types reached more than 2.5 million tons, up by 13% over the previous month and up by 30% over the same period in 2022. In the first 11 months of 2023, steel production reached 25 million tons, down nearly 8% over the same period. Steel consumption was nearly 24 million tons, down nearly 6% over the same period. Of which, Vietnamese enterprises exported more than 7.4 million tons of steel, up by 29% over the same period last year. Main export markets are ASEAN, EU, USA, India and Taiwan...It is forecasted that in the second half of 2023, the profits of steel industry enterprises may improve compared to the second half of last year. However, up to now, steel industry enterprises should not be too optimistic because market demand for domestic steel products in general is still weak and has not improved much.