Hoa Phat’s October Steel Surge

Hoa Phat
Hoa PhatImage Source: Hoa Phat

Synopsis:

In October, Hoa Phat Group experienced a 7% uptick in steel sales, reaching 635,000 metric tons. Notably, hot rolled coil sales rose by 17%, driven by heightened demand in the southern market and exports. The surge extended to downstream products like steel pipes and galvanized sheets, reflecting an 11% and 25% increase, respectively.

Article:

Amidst October’s industrial landscape, Hoa Phat Group, a major steel player, reported a surge in steel sales, hitting a robust 635,000 metric tons, marking a 7% month-on-month increase. This upturn was primarily propelled by soaring demands for hot rolled coil steel (HRC), construction steel, and steel billets.

Hoa Phat’s HRC sales registered an impressive 17% surge, clocking in at over 273,000 metric tons, with marked spikes in downstream products such as steel pipes and galvanized steel sheets, ascending by 11% and 25%, respectively, compared to the previous month. The buoyant figures were mainly attributed to escalated demands in the southern market and exports.

This surge in sales manifested significantly in Hoa Phat Group’s sales output, specifically noting an elevated demand for downstream products in the southern market and exports, which catapulted the sales of HRC downstream products like steel pipes by 11% and galvanized steel sheets by a staggering 25% compared to September. Specifically, steel pipes recorded a remarkable 54,000 metric tons, while steel sheets soared to 26,000 metric tons.

Despite the overall month-on-month decrease of 4% in construction steel and high-quality steel products, Hoa Phat Group remarkably witnessed a 23% surge in export output, marking a positive trend in their international market presence.

Throughout the initial 10 months of 2023, Hoa Phat Group reported a year-on-year decline in production, generating 5.43 million metric tons of crude steel, an 18% reduction compared to 2022. This decline resonated across HRC products, construction steel, high-quality steel, and steel billets, which collectively recorded a 15% decrease in sales, signaling a challenging market landscape.

Hoa Phat’s exports faced a notable downturn, with construction steel and high-quality steel sales plummeting by 21%, further exacerbated by a staggering 44% reduction in export volume to 600,000 metric tons.

The first 10 months of 2023 delineated a consistent decline for Hoa Phat in hot rolled coils and steel pipe sales, reducing by 2% and 13%, respectively, compared to the corresponding period in 2022. Additionally, galvanized steel sheets experienced a 3% decrease, producing 266,000 metric tons.

Recent data from the Vietnam Steel Association positions Hoa Phat Group at the forefront in the construction steel and steel pipe markets, securing substantial market shares of 33.27% and 27.34%, respectively. The group’s galvanized steel sheets maintain a solid position among the top 5 in the Vietnamese market.

Conclusion:

Hoa Phat Group’s October surge in steel sales reflects a mixed landscape, witnessing surges in specific segments while navigating overall market challenges. Despite fluctuations and reductions, their prominent market presence and strategic export initiatives reaffirm their foothold in the steel industry.

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