Hoa Phat steel sales up despite higher raw material prices

Vietnam’s largest steelmaker, the Hoa Phat Group, sold a total of 3.7 million tonnes of steel products in the first five months of this year, up nearly 70% against the same period last year.

The sale of construction steel hit 1.6 million tonnes, an increase of 27.5%, while that of square steel billet reach 576,000 tonnes, more or less the same year-on-year.

Hoa Phat also produced nearly 3.4 million tonnes of pig iron in the first five months, surging 56.5% year-on-year.

It produced 1.1 million tonnes of hot rolled coil (HRC) for the domestic market, along with 334,000 tonnes of steel pipe and 123,000 tonnes of coated steel sheet, posting year-on-year rises of 21% and 270%, respectively.

Despite a rise in material prices in May, the sale of Hoa Phat’s construction steel in the central region saw the highest growth in the country, of 45%, while in the northern region the growth hit 22%.

It sold 695,000 tonnes of steel products during the month, comprising 324,000 tonnes of construction steel, up 25%, and 225,000 tonnes of HRC.

The steelmaker shipped 70,000 tonnes of construction steel and 52,000 tonnes of billet abroad in the period.

Hoa Phat currently boasts a production capacity of 8 million tonnes annually. This year, it aims to produce 5 million tonnes of construction steel and billet, 2.7 million tonnes of HRC, 920,000 tonnes of pipe, and more than 300,000 tonnes of coated steel sheet.