Hoa Phat has to import more than 1.6 million tons of iron ore in 2016

Considering from the world abundant, cheap iron ore, Hoa Phat Steel Joint Stock Company has worked with many partners around the world to purchase actively raw materials for the steel integrated complex. Expected in 2016, the volume of iron ore import is about 1.6 million tons and may have to import more if Thach Khe iron mine has not been put into operation in 2017.

The iron ore will primarily purchase from South Africa, Australia, Brazil, Ukraine, India. Regarding import policy of large-scale iron ore, Mrs. Vuong Ngoc Linh - Deputy Director of Hoa Phat Steel JSC shares, in addition to local procurement, the company will boost imports of iron ore as raw material for the production of Hoa Phat steel integrated complex, with capacity of 1.8 million tons per year.

World ore price deeply decreased in the last two years and is likely to decrease further from this year end

"With the consumption rate 1.65 ton iron ore/1 ton of iron and steel, Hoa Phat needs 3 million tons iron ore per year. While limited domestic supply, the world ore resources are abundant, the import price is equal to or cheaper than domestic ore price but better quality, Hoa Phat has no reason to refuse import to make steel, "Mrs. Linh said.

In 2016, Hoa Phat Steel Joint Stock Company is expected to import 1.6 million tons of iron ore, and the remaining volume will buy in domestic and inventory. From 2017, Hoa Phat Steel JSC plans to use iron ore of Thach Khe mine, other domestic mines, and mainly raw material still has to be imported. Many experts have predicted the world iron ore price will keep falling deeply in late 2016 and early 2017 due to many projects of large-scale iron mines in the world to go into production, causing excess supply iron ore until 2020, at least.

Nghi Tran