Thái Nguyên Iron and Steel Joint Stock Corporation reports big profits in the first nine months of 2021, thanks to an upturn in the steel market. — Photo courtesy of the company

HÀ NỘI — Thái Nguyên Iron and Steel Joint Stock Corporation (TISCO) has posted a nine-month profit of VNĐ113 billion (US$5 million), seven times higher than the last year’s number and exceeding their yearly target by 190 per cent.

Accumulated net revenue also rose, reaching more than VNĐ9.6 trillion, up 37.5 per cent year-on-year. Thanks to this strong financial position TISCO stock has surged by nearly 55 per cent since the beginning of September.

The improvement in the company’s fiscal performance can be attributed in part to a worldwide rise in steel prices in early 2021, as a result of disruption in supply chains. Vietnamese steel companies have benefited greatly from this global shortage.

It hasn't all been plain sailing for TISCO, who did have a high ratio of debt to equity. The company faced stiff competition in pricing from rivals and had more than VNĐ5 trillion of capital tied up in the Thái Nguyên Iron and Steel phase-two plant. In 2019, TSCO was on the verge of bankruptcy.

However, the company turned things around thanks to an upturn in the steel market. In May, TISCO asked the authority for permission to continue the Thái Nguyên Iron and Steel phase-two plant and pledged to turn it into a well-run plant in the next few years.

In a report on the steel market, the Việt Nam Steel Association (VSA) said steel production and steel consumption in the first nine months of 2021 remained steady because the market could sustain the momentum from previous months. VSA believe the steel market will continue to grow through the rest of the year.

The steel industry also expects to benefit from the recovery of the economy after the COVID-19 pandemic. — VNS