Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Vietnamese steelmaker Hoa Phat sold approximately 500,000mt products in August despite difficult domestic market conditions, according to the company’s monthly release. Sales include 320,000mt finished steel and 170,000mt billets. Hoa Phat exported 54,000mt finished steel products in August, three times higher than the prior year. 


The company’s steel production rose 65pc from the prior August. Production in the southern region was 76,000mt, twice as much as in August 2019. Unfavourable weather and strict lockdowns in major provinces stalled many economic activities in Vietnam. Steel consumption in the civil sector continues to remain stable with support from state-funded renovations and upgradation projects such as Noi Bai and Tan Son Nhat airports, several wind and solar power projects, hospitals and schools, according to the company. These projects have aided Hoa Phat’s domestic sales.


In the Jan-Aug period, Hoa Phat produced 3.2mn mt steel which includes around 2.1mn mt construction steel and 1.1mn mt billets. Finished steel production rose by 18.3pc from the prior year period. Steel exports rose to over 310,000mt, twice as much as in the prior year period. Major export markets were Australia, Canada, Japan, Thailand, Korea, Malaysia, Laos and Cambodia. The company’s products also reached out to new markets in Africa, China and Taiwan.


Hoa Phat has also bagged a contract to sell 1.5mn mt billet with deliveries until November. 


Also, with the start of production at the Dung Quat blast furnace 3, Hoa Phat’s can start supplying HRC products this month. The blast furnace 4 of the KLH complex will be stabilized in early 2021, raising Hoa Phat Group’s total annual crude steel capacity to 8mn mt.

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