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Thursday, June 20, 2024

Hoa Phat’s steel sales improve further

The Saigon Times

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HCMC – Hoa Phat Group, a leading steel conglomerate in Vietnam, saw a notable improvement in steel sales in June.

Despite a 23% decline in crude steel production against the same period in 2022, Hoa Phat was able to provide 520,000 tons of crude steel.

The sales volume reached 540,000 tons, including construction steel, hot-rolled coil (HRC), and steel billets. Although this represents a 4% decrease compared to the same period last year, it is the highest volume achieved since the start of the year.

The construction steel segment accounted for 286,000 tons, which was an 18% decline compared to June 2022 but a slight increase from May. Hoa Phat attributed the month-on-month improvement to significant growth in construction steel sales in the central and southern regions, with respective surges of 30% and 69% over May.

Another notable highlight is the highest-ever production volume of 251,000 tons of HRC from Hoa Phat Dung Quat Iron and Steel Integrated Complex since November 2022, showcasing a 24% increase versus June 2022.

The growing demand for steel pipes and galvanized steel in the Northern and Central markets played a significant role in driving the improved performance of HRC sales in the past month.

The sales of steel pipes and various types of galvanized steel also increased slightly compared to May, reaching the highest level recorded since the beginning of the year. Particularly, the tonnage of galvanized steel products soared 42% over the same period in 2022.

Hoa Phat has supplied nearly 2.9 million tons of steel to the market in the past six months, a 34% decline against the year earlier. The sales volume of construction steel, steel billets, and HRC during this period totaled 2.9 million tons, down 27% against the first half of 2022.

During the first half of the year, Hoa Phat delivered over 1.6 million tons of construction steel, down 30% year-on-year. The company also supplied 36,000 tons of steel billets to other steel mills in Vietnam.

While the supply of hot-rolled coil (HRC) to both domestic and international markets declined by 15% to 1.2 million tons, Hoa Phat successfully exported its products to various countries and territories in Europe and Asia.

The production volume of steel pipes and galvanized steel reached 325,000 tons and 175,000 tons, respectively, a slight decrease compared to the first half of 2022.

Within Vietnam, Hoa Phat holds a market share of 32% for construction steel and 27% for steel pipes. Its galvanized steel products rank among the top five largest manufacturers in the country.

Hoa Phat is the only Vietnamese company capable of producing both HRC and pre-stressed concrete strands (PC Strand), reducing the country’s dependence on imported steel.

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