HCMC – Metal costs have risen by as a lot as VND1 million per ton because the starting of the 12 months, however metal producers have incurred losses.
The Vietnam Metal Affiliation has attributed the metal worth hike to rising import costs of enter supplies corresponding to coal, iron ore, metal scrap and rolled coils, the Vietnam Information Company reported.
Securities agency Vndirect projected that the online earnings of native metal producer Hoa Phat Group may flip unfavorable as a consequence of weak demand and lower-than-expected manufacturing.
Within the first two months of 2023, the uncooked metal output of the steelmaker plunged 42% year-on-year, whereas its manufacturing of building metal, scorching rolled coils and metal billets plummeted 34% over the identical interval of 2022.
Enterprise circumstances of the metal trade would stay bleak this 12 months as a consequence of fierce competitors within the home market, excessive rates of interest, change charge volatility and tight financial coverage, Vndirect mentioned in its market report.
Nonetheless, metal demand could soar because of China’s easing of Covid-19 restrictions and if public funding tasks make good progress.