Hoa Phat steel sales reached 542,000 tonnes in Q1

Hoa Phat Group, a major industrial production group in Vietnam, manufactured 542,000 tonnes of steel in the first quarter of 2018, up nearly 10 per cent year on year. During the period, it exported more than 73,000 tonnes of steel for more than US$ 7 million.

In March alone, the firm sold more than 180,000 tonnes of steel, equivalent to last year’s figure and increasing 10 per cent from February. The group shipped 11,700 tonnes of steel abroad, mainly to Australia, Southeast Asian countries, and the US.

As a result, Hoa Phat’s steel market share went up to 24 per cent, leading the sector in Viet Nam.

The Viet Nam Steel Association (VSA) said the steel sales in March 2018 slightly increased by 1.2 per cent from the same period last year. By the end of the first quarter of the year, the steel sales of VSA’s members were on the rise in comparison with 2017, meeting with local demand and exports. Hoa Phat increased its market share to 24 per cent and maintaining its leading position in the steel sector.

The market share chart of Top 5 biggest steel producers in Viet Nam (according to VSA)

According to the latest ranking announced by Viet Nam Report, Hoa Phat steel took the lead in top 10 most prestigious building material businesses in Viet Nam for two consecutive years and one of companies with long history and largest scale in the building material sector. Hoa Phat steels have been used in many big constructions nationwide.

By the end of March, the Australian Anti-Dumping Commission (ADC) ended its year-long investigation into alleged dumping of steel rod in coils exported to Australia from Vietnam in favour of the country after finding no evidence of foul play.

In its Terminal Report No 416 issued on March 26, the commission concluded that “the dumping margin for Hoa Phat, and for all other exporters from Viet Nam, is negative.”

ADC’s decision is good news for Vietnamese steel producers as Australia is a potential steel market.

Nghi Tran