Hoa Phat construction steel’s market share increases to 32%

16/09/2020 08:49

In the first 8 months of the year, Hoa Phat’s steel sale reached 3.2 million tonnes including 2.1 million tonnes of finished steel and 1.1 millions of steel billet. Finished steel output was increased by 20 per cent over the same period last year. The output in the southern region exceeded 500,000 tonnes for the first time in the 8 month period and doubled over the corresponding period last year. The impressive consumption helped Hoa Phat steel increasing its market share to 32 per cent by the end of August 2020.

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The market share of Hoa Phat’s construction steel has continuously increased

Looking back on history, in 2017, one year after the group completed Phase 3 of Hoa Phat Hai Duong Steel integrated Complex, Hoa Phat steel's market share was increased to 22.2 per cent. This is the first time that Hoa Phat has surpassed VnSteel (Vietnam Steel Corporation), affirming its leading position in the steel industry.

With the increasingly stable product volume of Hoa Phat Dung Quat Steel integrated Complex (in central Quang Ngai Province), Hoa Phat’s construction steel has shown a breakthrough in growth since 2018. In the period of 2010-2017, the market share was increased by 10 per cent after 7 years. However, Hoa Phat’s steel took less than 3 years to occupy 10 per cent of the market share from 22 per cent to 32 per cent thank to the establishment of Hoa Phat Dung Quat Steel integrated Complex.

The achievement was a combination of many factors such as high quality of its steel products made from iron ore, competitive prices, the ability to quickly and fully supply market demand both in terms of types and grades of steel etc. However, the key point is that the group's strategy to expand and dominate the southern market in the past 5 years. To realize the strategy, the VND60 trillion Hoa Phat Dung Quat Steel integrated Complex project has been implemented since 2017, with two main product lines of long construction steel and hot rolled flat steel. The project has a capacity of about 5 million tonnes a year. After just over one year of implementation, the complex in Quang Ngai Province provided the first products to the market and is playing a key role in promoting the growth of Hoa Phat steel’s market share.

The latest report of Vietnam Steel Association showed that the sale of its member companies in the first 8 months of the year reached 6.6 million tonnes, representing 5.8 per cent year-on-year decrease. Of which, the steel export volume was 906,000 tonnes, reducing 5.9 per cent from the same period last year. Despite of the decrease of the steel industry, Hoa Phat steel has seen strong growth, especially in the southern region and exports.

 Nghi Tran

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