Hoa Phat Group sold over 3 million tones of steels in 11 months

In November, Hoa Phat Group reached 552,000 tons of crude steel, posting 68 per cent year-on-year increase. Its total sale of steel billet and construction steel last month reached 514,000 tones.

Hoa Phat Group sold over 3 million tones of steels in 11 months

Of which, the sales volume of finished steel products in November reached 344,000 tonnes, up 14.3 per cent over the same period last year and 37.6 per cent from the previous month. The group also exported 170,000 steel billet and 45,000 tons of finished steel which were double the corresponding period last year.

According to Hoa Phat’s leaders, the group has given priorities for production of hot rolled coil (HRC) steel at Hoa Phat Dung Quat Steel integrated Complex. It is the reason that the output of construction steel has not been able to meet with the market demand. If more products were available, construction steel sales in November may be higher than the record level in September.

In the first 11 months of the year, Hoa Phat Group reached an output of 5.2 million tonnes of crude steel to the market, double the same period in 2019. The steelmaker sold over 3 million tonnes of finished construction steel, representing 23.7 per cent year-on-year increase. In which, the group shipped 480,000 tonnes to the foreign markets, more than two times higher than the same period last year. Its big imported markets include Japan, South Korea, the US, Canada, Australia, Cambodia, Laos, Malaysia, Taiwan, Indonesia, and Ghana. In addition, Hoa Phat Group also exported nearly 1.6 million tonnes of square billet for construction steel production.

Hoa Phat Group has received an increasing number of orders for hot rolled coild steel in the year-end months, surpassing its supply ability

Hoa Phat has recorded an output of 170,000 tonnes of hot rolled coil in November, up nearly 50 per cent compared to October, bringing the total amount of hot rolled coil so far this year to 515,000 tonnes. With the advantage of large scale production from iron ore, the production cost of Hoa Phat’s HRC is at a good level compared with large manufacturers in China and the world. HRC price zone is currently creating a much higher profit margin than construction steel products.

Hoa Phat Group has received an increasing number of orders for construction steel and hot rolled coild steel in the year-end months, surpassing its supply ability. This has been a momentum for the group to further accelerate progress of the No. 4 blast furnace at Hoa Phat Dung Quat Steel integrated Complex. It is expected that in January 2021, the entire project in Dung Quat will be completed and put into operation in both two phases with a capacity of about 5 million tonnes a year.

 Nghi Tran