Hoa Phat consumed nearly half a million tons of steel in August
VietReader 3-09-2020, 08:16

In August 2020, Hoa Phat construction steel provided the market with 490,000 tons of products, including over 320,000 tons of finished steel and 170,000 tons of billet.

Hoa Phat consumed nearly half a million tons of steel in August

Mr. Tran Tuan Duong – Vice Chairman cum General Director, is also in charge of Hoa Phat’s construction steel segment. Photo: Duc Quyen.

According to Hoa Phat Group (Code: HPG), finished construction steel production in August this year increased by 65.8% over the same period in 2019. In which, the output in the South reached 76,000 tons, export reached 54,000 tons, both 2-3 times higher than the same period.

Hoa Phat said that the corporation’s construction steel is used in both civil areas as well as public investment projects such as the renovation and upgrading of Noi Bai international airports, Tan Son Nhat, many wind and electricity projects, school, hospital.

In the first 8 months of 2020, Hoa Phat achieved sales volume of 3.2 million tons of steel, of which construction steel finished products were over 2.1 million tons, the rest was steel billet. Finished steel output increased by 18.3% over the same period, the South exceeded 500,000 tons for the first time after 8 months and doubled over the same period.

In 2020, Hoa Phat plans to sell 3.6 million tons of construction steel. After the first 8 months of the year, the group has achieved 58.3% of the target.

At the annual shareholder meeting held on June 25, General Director Tran Tuan Duong estimated that it would be difficult to achieve the goal of 3.6 million tons of finished steel this year. Instead, Hoa Phat will increase sales of crude steel (billet) to compensate.

The amount of steel exported in 8 months has exceeded 17% compared to the whole year of 2019 with over 310,000 tons. Major markets include Japan, Korea, Malaysia, Australia, Canada, Thailand, Cambodia, and Laos.

Among export markets, Malaysia has the best growth, Hoa Phat said. The total volume of export orders delivered to Malaysia in November 2020 is over 50,000 tons, 6.3 times higher than the same period. In addition, Hoa Phat Steel has found some new markets such as Kenya, Ghana (Africa), mainland China, and Taiwan.

Besides finished steel, Hoa Phat signed a contract to sell 1.5 million tons of billet to domestic and foreign markets, delivery until November. By the end of August, the amount of billet exported out of the factory was more. 1 million tons, of which 66% is the product of Hoa Phat Dung Quat Iron and Steel Production Complex.

In August, Hoa Phat Dung Quat Complex put the No. 3 blast furnace and No. 4 blower into operation, and is expected to supply hot rolled coil (HRC) to the market from the end of September 2020. Regarding blast furnace No. 4, Hoa Phat said that the construction progress is taking place smoothly and can put this last blast furnace into stable operation from the beginning of 2021.

Source: vietnambiz.vn – Translated by fintel.vn