Hoa Phat Group to deliver 140,000 tonnes HRC in the beginning of next month

The output of hot rolled coil (HRC) at Hoa Phat Dung Quat Iron and Steel Complex reached more than 340,000 tonnes since its test run in May 2020. Of which,  the output in October was more than 112,000 tonnes. Hoa Phat Group would start to sell the HRC product to the market from the beginning of November.

Hoa Phat Group to deliver 140,000 tonnes HRC in the beginning of next month

Recently, both domestic and foreign customers repeatedly asked to buy Hoa Phat's HRC products. However, the group did not have products for sale because they were using for its production. Hoa Phat Dung Quat Steel Joint Stock Company now is priotising to receive orders from a number of local steel pipe and structural steel producers with a volume of about 140,000 tonnes following the market prices.

The first batch of HRC is expected to be delivered to customers from the beginning of next month to use as input material for steel pipe factories in Vietnam. Of which, orders from customers in the northern region account for 60 per cent of the total.

Hoa Phat Dung Quat Steel Joint Stock Company planned to put the project's No 4 blast furnace into operation in January 2021. When all four blast furnaces at the complex come into operation, Hoa Phat’s HRC output would reach over 3 million tonnes per year, meeting the needs of steel pipe, galvanized steel pipe and other mechanical engineering industries, thus contributing to help the Vietnamese steel sector proactively ensure input materials for domestic enterprises and boosting exports.

According to statistics from the Vietnam Steel Association (VSA), the annual demand for hot rolled coil in Vietnam is currently about 12 million tonnes. Meanwhile the production capacity is about 8 million tonnes a year including 5 million tonnes of Formosa Ha Tinh and over 3 million tonnes of Hoa Phat.

HRC production lines of Hoa Phat are designed, supplied and installed by Danieli Group from Italy

The HRC production ouput has only met about 60 per cent of domestic demand. It is the reason that Hoa Phat Group is actively implementing legal procedures to expand the project in Dung Quat with a focus on HRC products, thereby maintaining the group’s growth rate of revenue and profit in the long term.

With a total additional investment of VND60 trillion, the production scale of the expansion phase is 5 million tonnes a year, including 3 million tonnes of HRC, 1 million tonne of medium-sized high quality steel, 500,000 tonnes of fabricated round steel.

All the current HRC production lines of Hoa Phat are designed, supplied and installed by Danieli Group from Italy. This is the current most advanced technological line in the world. HRC products of Hoa Phat Dung Quat meet all the most strict requirements of the US (ASTM A1011, SAE J403), Japan (JIS G3101, JIS G3106, JIS G3131, JIS3132) and the UK (GB/T 700).  The product has steel grade and thickness varies from 1.5mm to 12mm with flexible width from 900mm - 1,500mm.

Nghi Tran