Vietnam's Steel Industry Booms in Q3 2025 with Double-Digit Profit Growth
Vietnam's steel industry is booming in Q3/2025, with strong profit growth driven by increased output and stable gold prices. Hoa Phat Group's new Phase 2 capacity at Dung Quat 2 has contributed significantly to this success.
Analysts at MB Securities attribute the industry's robust performance to Hoa Phat Group. The company's new capacity at Dung Quat 2 has begun operations, boosting production. Gross margins have rebounded significantly due to stable steel prices and reduced input costs. This has led to double-digit profit growth for major players like Hoa Phat, Ton Dong A, Nam Kim, and Hoa Sen in Q3/2025.
Recovering domestic steel prices and output are the key factors behind these improved results. Construction steel and HRC (hot rolled coil) make up 65% of total steel volume in the quarter. Consumption of construction steel is projected to increase by 10% year-on-year, thanks to growing real estate supply and public investment. Total domestic steel output is expected to rise by 21% year-on-year, reaching 6.3 million tons. HRC consumption is set to grow 48% year-on-year, reaching 1.7 million tons. Domestic HRC producers like Hoa Phat and Formosa are expected to gain market share due to stricter controls on Chinese imports.
Steel prices have seen a modest recovery in Q3/2025, with HRC prices rising 2% and construction steel prices rising 3% quarter-on-quarter. Notably, Hoa Sen is expected to see a remarkable increase of over 200% in profit during this quarter. These trends suggest a positive outlook for Vietnam's steel industry.
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