In the first five months of 2025, global steel production fell by 1.3% to 784 million tons due to weak demand. Meanwhile, Vietnam’s domestic steel market grew by 11%, supported by a recovery in real estate and public investment. Due to increasing protectionism, Vietnam’s steel exports dropped by 30.9%. Hoa Phat (HPG) is focusing on the domestic market, aiming to keep its export ratio under 20%. The domestic steel demand is expected to continue rising due to ongoing construction projects, with Hoa Phat producing 2.5 million tons of crude steel in Q2, alongside increased revenue from high-quality products and hot-rolled steel.
The government is supporting companies in supplying steel for major projects like the North-South high-speed railway. SSI Research predicts Hoa Phat’s profits will increase by 63% in the second half of 2025 due to trade protection measures. However, companies producing galvanized steel like HSG and NKG face increasing competition, cost fluctuations, and potential overcapacity issues in the Vietnamese steel industry.
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