- The Russia-Ukraine war and the Western’s sanctions on Russia have led to a disruption in steel production and steel import over the Western countries. Steel prices in the EU have surged to a new peak in March 2022. HSG has finalized purchasing a million tons of HRC at low-price, which suffices to sell until the end of August 2022 and makes it ready to capture the high-pricing opportunity.
- The FY2021-2022 revenue and NPAT-MI are forecasted to be VND 66,408 bn (USD 2,913 mn, +36%) and VND 4,172 bn (USD 183 mn, -2%), respectively 19% and 32% higher than our previous forecast. The growth driver stems from higher export volumes and prices in the North America and the EU markets. For the FY2022-2023, we foresee a downturn in export volume and selling prices, caused by a recovery of steel production globally. Such developments will likely result in a significant negative growth in the bottom line.
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