Steel stock companies are also experiencing a significant rise in their stock prices. Hoa Sen Group and Hoa Phat Group suffered a decline of 3 percent and 1.2 percent respectively in the correction session on January 29, but their liquidity reached 22.5 million units and 21.58 million units respectively, making them the most active group in the market.
The expectation of recovery in the steel industry is seen as the most important factor in the rise of prices. According to SSI Research's forecasts, a 10 percent increase in steel production is expected in 2024 and an 8 percent increase in 2025. This increase will be driven by increased demand in various economic sectors due to increased public investment capital disbursement towards major transport infrastructure projects.
A significant increase in the profits of steel companies is also expected. According to SSI Research's forecasts, net profit of steel companies in 2024 will recover from the low levels in 2023, rising from $2.2 billion in 2023 to $4.6 billion in 2024.
The expectation of a strong recovery in the construction sector will be the driving force of domestic steel consumption. The amendments made by the National Assembly to the Land Code on January 18 will contribute to the revival of real estate and construction markets this year.
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