Hoa Phat's Steel Surge Signals Success

Hoa Phat
Hoa PhatImage Source: Hoa Phat

Synopsis:

Hoa Phat Group showcased a robust performance in December 2023, witnessing a 4% increase in crude steel production, reaching 648,000 metric tons, while achieving a remarkable 7% rise in sales, totaling 760,000 metric tons. The surge in construction and high-quality steel marked a 13% increase, signaling positive market traction in the domestic sector and extensive exports to 30 countries, including Canada, South Korea, Japan, and Australia.

 

Article:

Hoa Phat Group, a prominent player in the steel industry, recorded a significant surge in production and sales figures in December 2023. The group's production of crude steel escalated by 4%, reaching an impressive 648,000 metric tons compared to the previous month.

What stands out is the remarkable sales surge, particularly in hot rolled coil (HRC) steel products, construction steel, and steel billets, which soared to 760,000 metric tons, marking a notable 7% increase from the preceding month. Among these figures, construction steel and high-quality steel contributed substantially, achieving a remarkable 13% rise, amounting to 462,000 metric tons compared to November.

This surge in steel production and sales is attributed to the increased activity in the domestic market, including civil sector projects and public investments. Notably, Hoa Phat's construction steel played a vital role in various prestigious projects like the Long Thanh International Airport, Dien Bien Airport expansion, Tan Son Nhat airport renovation, and the North-South Expressway.

The group's proactive approach towards exports was evident, with 113,000 metric tons of construction steel and high-quality steel being exported to 30 countries and territories, where these materials were utilized in making wire rods and welding rod cores. Additionally, 103,000 metric tons of HRC were exported, contributing nearly 40% to Hoa Phat's total hot rolled steel coil sales volume.

In a larger annual context, Hoa Phat Group exhibited a robust performance in 2023, producing 6.7 million metric tons of crude steel. The year-on-year sales volume of HRC steel products, construction steel, high-quality steel, and steel billets reached 6.72 million metric tons, showing a 7% decrease compared to the previous year.

Despite this decrease, the group's HRC hot-rolled steel coil marked a notable increase of 6%, reaching nearly 2.8 million metric tons compared to 2022. Additionally, the company supplied 685,000 metric tons of steel pipes, posting a 9% decrease year-on-year, while galvanized steel sheets remained consistent at 329,000 metric tons.

Hoa Phat Group currently holds a substantial crude steel capacity of 8.5 million metric tons per year, positioning itself as a dominant force in the Vietnamese and Southeast Asian steel market, leading in various sectors such as construction steel, steel pipes, and galvanized steel sheets.

Conclusion:

Hoa Phat Group's remarkable surge in steel production and sales in December 2023 stands as a testament to its strong market presence and strategic positioning. The substantial rise in domestic construction steel demand and extensive exports underscore the group's prominence not only in the local market but also on the global stage.

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