Hoa Phat’s steels post sale hike in January

Sales of Hoa Phat’s steels posted high growth in the first month of this year. Construction steel sale reached around 250,000 tonnes in January, posting 27 per cent year-on-year increase. Steel pipe sale was 59,600 tonnes, up 15.2 per cent from the same period last year. With the results, Hoa Phat’s market shares of construction steel and steel pipe were significantly hiked from the end of last year to 26.8 per cent and 29.5 per cent respectively.

Hoa Phat’s contruction steel sale reached around 250,000 tonnes

Sales of Hoa Phat construction steel in the first month of this year hit 250,000 tonnes, a 27 per cent year-on-year rise and equal to record sales in October 2018. The latest report from Vietnam Steel Association (VSA) showed that Hoa Phat’s construction steel sale continued to taking the lead, further surpassing market shares of other big producers in the country’s top 5.

Hoa Phat Group said steel sales in the central and southern regions accounted for 48,800 tonnes, with the rest in the northern region. Mr. Dinh Quang Hieu, head of Hoa Phat’s marketing department said its agents were stocking steel for construction after the Tết (Lunar New Year) holiday.

The group’s steel exports also saw high volume of 34,6000 tonnes last month. Of which, the US and Cambodia were the biggest importers with volumes of 12,000 tonnes and 11,772 tonnes, respectively. In addition, Hoa Phat’s steels were shipped to Japan (7,300 tonnes), Indonesia, Laos, Australia and others. Exports of high-quality coil steel wire accounted for 66.4 per cent of the total exported volume, mainly shipped to the US and Japan. The firm’s steel exports to Japan last year were 20 times higher than that of 2017.

Market share of Hoa Phat’s steel pipe reaches 30 per cent

Sales of construction steel and steel pipe in January reached the same record level on October 2018. Hoa Phat’s steel pipe continued affirming its leading position with around 60,000 tonnes, accounting for 29.5 per cent of market share – the highest level so far.

VSA said sales of other steel producers were only increased by five per cent against December 2018 and not much higher than the same period last year. Exports of welded steel pipes were even reduced from the corresponding period last year. However, Hoa Phat’s steel pipe still achieved the growth rate of 15.2 per cent.

Hoa Phat Steel Pipe Company Limited also received an order exporting some 1,000 tonnes of galvanized steel pipe to India with total value of US$600,000 in January. The order will be delivered in March. In addition, it also received orders from the US and Canada.

Hoa Phat is aiming for consumption of 3.3 million tonnes of construction steel in 2019 as its second steel rolling line of its Hoa Phat Dung Quat Steel Integrated Complex is expected to become operational by the end of this year. Meanwhile, the Hoa Phat Steel Pipe Company Limited targeted sale growth rate of 10 per cent and exports increased by 150-200 per cent over last year,

Nghi Tran