Vietnam’s steel producer, Hoa Phat Group experienced a decline in crude steel production in June 2023, producing 520,000 tons, which was 23pct lower than the same period in 2022.
The company’s sales volumes of construction steel products, HRC, and billet reached 540,000 tons, showing a 4pct decrease compared to 2022 but still the highest for this year.
Among these products, construction steel accounted for 286,000 tons, which was an 18pct decrease compared to June 2022, but it saw a slight increase compared to May. This growth was primarily driven by higher sales in the Central and Southern regions, with increases of 30pct and 69pct respectively compared to May.
The HRC products from Hoa Phat Dung Quat Iron and Steel Production Complex reached their highest level since November 2022, with 251,000 tons, marking a 24pct increase compared to June 2022. The increased demand for steel pipe and galvanized steel mills in the North and Central markets contributed significantly to the surge in hot rolled coil output in the past month.
Hoa Phat also witnessed a slight increase in downstream HRC products, such as steel pipes and galvanized sheets, compared to May 2023, reaching the highest level since the beginning of the year. Notably, steel sheet products experienced a significant growth of 42pct compared to the same period in 2022.
Over the span of six months, Hoa Phat produced 2.86 mln tons of crude steel, a decrease of 34pct compared to the same period last year. The sales volume of construction steel, billet, and HRC reached 2.9 mln tons, down 27pct compared to the first six months of 2022.
Throughout the first half of the year, the group’s construction steel amounted to over 1.6 mln tons, representing a 30pct decrease. In addition to finished steel, Hoa Phat supplied 36,000 tons of steel billets to other steel mills in Vietnam.
The domestic and foreign markets received 1.2 mln tons of HRC steel, a decrease of 15pct. The products were exported to various countries and territories in Europe and Asia. Hoa Phat’s steel pipe and corrugated iron achieved outputs of 325,000 tons and 175,000 tons, respectively, showing slight declines compared to the first six months of 2022.
Vietnam’s Hoa Phat Group is a major steel producer with a capacity of 8.5 mln tons per annum.
