Hoa Phat reached output of over 1 million tonne in H1

Hoa Phat’s construction steel supplied over 1 million tonne to the market in the first half of the year, increasing 33 per cent from the same period last year and meeting with 50 per cent of the whole year’s set target. The breakthrough helped its market share increased from 22.2 per cent in the end of 2016 to 24 per cent in the first half of 2017.

Hoa Phat Steel exported around 90,000 tonnes of construction steel and wire rod steel to the US, Australia, Malaysia, Singapore, Cambodia, Laos and the Philippines in the six month period.

Alone in June 2016, the steel consumption was 167,500 tonnes. Of which, the wire rod output was 21,300 tonnes for both local consumption and exports. The Hoa Phat’s wire rod steel has high and stable quality which has been given positive response from the market.

Last month, Hoa Phat posted the highest export volume so far this year with more than 22,000 tonnes to the US and Australia. Of which, the welding rod steel made up the big portion.

In the first half of the year, the steel exports account for 10 per cent of total output of Hoa Phat’s steel

The construction steel consumption in the central and southern regions in the first six months of the year was 115,800 tonnes and 101,000 tonnes, increasing by 15 to 20 per cent over the same period last year. The consumption in the northern region also contributed more than 70 per cent of the total with the average increase of 11 per cent in the six month period.

Mr. Dinh Quang Hieu, head of the marketing department of Hoa Phat Steel said their factories have been under maximum capacity to meet with the market’s demand. However, the demand for Hoa Phat’s steel products in general and wire rod steel in particular in both local and foreign markets has been huge.

With the big market potential, Hoa Phat has been accelerating the Hoa Phat Dung Quat Integrated Steel Complex in Quang Ngai Province. Its Italian Danieli Group ensures that the first rolled steel line would be completed for pilot operation in June 2018. The second production line is expected to be completed six months later.

Hoa Phat is negotiating with the world leading partners on many other important works for the project such as steelmaking and casting machine etc.

Nghi Tran