Steel-Note-[NEUTRAL]-A Solid Turn-around ?!
This quarterly earnings report on Vietnam steel production is intended to track the earning growth trend in the steel market. We witnessed a turn-around of earnings in 1Q23. Although the turn-around was mainly attributed by the reversal of inventories provision, high-cost inventories pressure was believed to be fully relieved. We expect to continue to see the weak demand in 2Q23F but slight improvement compared to 1Q23. We forecast the total sales volume in 2Q23F will be 6.1mn tonnes -6% yoy, +10% qoq.