Hoa Phat group achieves 5mn mt of billets and construction steel production for the first time in 2020. Following the expansion of its HRC capacity, Hoa Phat aims to produce 2.7mn mt of HRC in 2021 up from 700,000mt in 2020. Despite the pandemic, production of construction steel rose by 22.5pc in 2020 to 3.4mn mt from a year ago amid strong demand from the construction sector. Billet production was 1.7mn mt. Amid rising sales, Hoa Phat Steel’s market share was the largest in the country reaching 33pc, up 6.8pc from 2019.
In December, Hoa Phat’s construction steel output reached 319,000mt, up by 12pc from the prior year. Billet production in December rose to 90,000mt. In 2020, the company commenced HRC production at its new facility with orders exceeding 300pc than its capacity in the first month. HRC production in December was 171,000mt.
In 2020, with an annual steel output of 784,000mt, Southern region recorded a growth of 70pc from a year ago. The North region contributed the largest share of total finished steel sold by Hoa Phat construction steel with 48pc sales.
In 2020, exports of finished steel hit 540,000mt doubling from the prior year. In major export markets of construction steel for Hoa Phat included Japan, Korea, Canada, Australia, Cambodia, Laos, Malaysia, Taiwan, Indonesia, Ghana and Kenya. The company exported 1.7mn mt of square billet for construction steel production to Thailand, China, Malaysia, Indonesia, Taiwan and Sri Lanka. The steelmaker seized the opportunity to export to China when domestic demand was low. Exports to China increased 12 times from 2019 volume. In December, total steel export volume reached 59,000mt, up 48pc from the prior year.
In 2020, Hoa Phat catered to demand from various infrastructure projects including Metro Nhon-Hanoi Railway Station, elevated Ring 3 (section Mai Dich – South Thang Long), Head office of the Securities Commission, North-South Expressway (section passing Quang Tri – Hue), Van Don – Mong Cai expressway, Cua Hoi bridge (Nghe An), Long Thanh – Dau Giay expressway, Trung Luong – My Thuan expressway and airport improvement projects.