Nam Kim Steel's products in storage. — Photo tonnamkim.com
Nam Kim Steel JSC (NKG) announced it had produced a total of 244,301 tonnes of steel products in the first quarter, exporting a record of 151,992 tonnes, mostly to European countries and the US. A recent report showed NKG's production reached 101,766 tonnes in March, of which galvanised steel accounted for the biggest proportion of 44,320 tonnes, cold steel was 23,635 tonnes, colour coated steel was 11,031 tonnes and steel pipes 22,780 tonnes. Total consumption in March was 103,481 tonnes, of which export volume alone accounted for 62,422 tonnes, equivalent to more than 60 per cent.
In the first quarter of 2021, the company produced 244,301 tonnes of steel products. It sold 240,072 tonnes in the domestic market while exporting a company record of 151,992 tonnes, mostly to European countries and the US. According to the Viet Nam Steel Association, global steel demand is expected to climb 4.1 per cent this year as developed markets recover after witnessing a decline of 2.4 per cent last year. In the local market, consumption is estimated to rise by 8 per cent on active infrastructure investment, the recovery in the real estate market and the manufacturing and processing industry, as well as foreign investment. Consumption of construction steel, steel pipe and galvanised steel sheet in the domestic market this year is expected to increase 9 per cent, 8 per cent and 8 per cent, respectively. Viet Nam's steel exports are also forecast to improve this year with many companies in the industry have optimistic targets for 2021.
NKG expects this year's revenue to reach VND16 trillion, up 38 per cent year-on-year, while profit after tax will jump 200 per cent to VND600 billion.
Recently, the company's Board of Directors approved the policy of receiving 100 per cent of charter capital in Dae Myung Paper Vietnam Co. from Dae Myung Chemical Co. Ltd.
NKG said that acquiring Dae Myung Paper Vietnam aimed to use its land for storage and steel pipe plants.
In 2020, NKG posted a revenue of nearly VND11.56 trillion, slightly decreased compared to 2019. But its profit after tax was VND295.3 billion, up more than six times over 2019.
Last Friday, NKG shares, which are listed on the Ho Chi Minh Stock Exchange, traded at VND24,650, up 1.23 per cent. — VNS