Data shows that steel consumption sales of Nam Kim Steel (stock code NKG) in September 2023 decreased by 29% compared to August 2023, mainly due to a sharp decline in galvanized steel export activities.
Steel consumption in September 2023 decreased sharply
Sales growth (tons) of Nam Kim Steel in September 2023. (Source: VSA, KIS Vietnam, Nam Kim Steel)
Securities firm KIS Vietnam Securities cited data from the Vietnam Steel Association (VSA) showing that the total steel sales of Nam Kim Steel Joint Stock Company (stock code NKG - HoSE) in September 2023 only reached 53,644. tons, down 14.1% over the same period last year and down 28.9% compared to August 2023.
In particular, consumption of galvanized steel accounts for 83.2% of Nam Kim Steel's total September 2023 sales, equivalent to 44,633 tons. This number increases by 3.4% over the same period in 2022 but decreases by 32.8% compared to August 2023.
In terms of consumption channels, exported galvanized steel sheets in September 2023 reached 27,616 tons, down 43% compared to August 2023 but increased 19.7% over the same period in 2022. The amount of galvanized steel sheets sold domestically only reached 17,017 tons. tons, down 15.3% compared to August 2023 and down 5.3% over the same period last year.
While the amount of steel pipes sold reached 9,011 tons, almost unchanged compared to August 2023 but down 53.3% compared to the same period in 2022.
Production growth (tons) of Nam Kim Steel in September 2023. (Source: VSA, KIS Vietnam, Nam Kim Steel)
Thus, in the first 9 months of this year, Nam Kim Steel's total steel sales are estimated at 638,277 tons, down 7.8% compared to the same period in 2022. The main reason is that galvanized steel sales decreased by 5%, 5%, down to 536,178 tons and steel pipe sales decreased 18.3%, reaching only 102,099 tons.
In terms of consumption channels, export channels accounted for 61.3% of Nam Kim Steel's total sales in the first 9 months of this year, reaching more than 386,200 tons, down 6% over the same period last year. Meanwhile, domestic sales decreased 10.5%, to 252,000 tons.
It is expected that Nam Kim Steel's export channel will speed up again
According to KIS Vietnam's assessment, the above business results of Nam Kim Steel are lower than initial expectations, especially in the domestic market. The main reason is that the real estate market in general and the construction sector in particular are still weak, causing consumer demand to not recover.
Currently, MBS Research expects that Nam Kim Steel's export channel in the last months of this year will accelerate significantly compared to the beginning of the year when the demand for steel in the US and European Union (EU), the two main markets, will accelerate. The power of this business is forecast to increase. Nam Kim Steel currently holds the leading position in the industry in Vietnam in exporting galvanized steel.
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