Hoa Phat's steel consumption decreased

Hoa Phat Group Joint Stock Company (HPG) has just announced the consumption of steel and steel products in November with sales equivalent to the same period last year but down 2 digits compared to October.

Specifically, in November, the largest steel producer in the domestic market consumed a total of 765,000 tons of steel of all kinds, equivalent to the same period last year. However, this volume decreased by 21% month-on-month (approximately 203,000 tons).

This is also the first month that Hoa Phat recorded a decrease in steel consumption of all kinds after 4 consecutive months of positive growth. However, considering this year, the amount of steel sold by this group in November is still ranked 4th.

In the structure of consumed steel products, Hoa Phat said that the sales of finished construction steel in the month were more than 271,000 tons. In which, export steel alone was more than 100,000 tons, 2.3 times higher than the same period last year.

Similarly, hot rolled coil output was high, with 206,000 tons sold.

Hoa Phat corrugated iron products also recorded the first month surpassing 60,000 tons, the highest ever. While the group's galvanized steel sheet export volume has recently reached an average of 55,000 tons/month, mainly from the increased demand from the US and European markets.

Accumulating 11 months, the enterprise known as "the king of steel" has sold a total of 8 million tons of steel of all kinds, up 33% over the same period.

In which, construction steel was 3.5 million tons, up 15%, including export market reached 914,000 tons, up 90%. The output of hot rolled coil is more than 2.3 million tons.

In general, since having the first HRC product in May 2020, Hoa Phat has sold 3 million tons in early December this year.

With corrugated iron products, after 11 months, the group has sold 380,000 tons, up 150% over the same period and exceeding the set target for the whole year. This result is mainly due to the prosperous corrugated iron export market, contributing up to 68% of the group's sales volume since the beginning of the year until now.

In the steel sector, Hoa Phat has a capacity of 8 million tons/year, including 5 million tons of billet and construction steel, 3 million tons of hot-rolled coil (HRC). With HRC downstream products, Hoa Phat's steel pipe capacity is 1 million tons/year, galvanized steel 400,000 tons/year.

This group said that it is accelerating the implementation of a container production project in Ba Ria - Vung Tau province with a capacity of about 200,000 TEUs.

This year, billionaire Tran Dinh Long's business plans to earn  120,000 billion dong revenue and  18,000 billion dong net profit from business activities.

According to the financial report of the third quarter, after 3/4 of the fiscal year, Hoa Phat recorded more than 105,800 billion in revenue and after-tax profit   27,100 billion dong, up 60% and 200% respectively over the same period in 2020. is the best business result so far that the "steel king" has recorded so far.

On the stock market, after a period of strong growth from the beginning of the year to mid-October, Hoa Phat's HPG stock is falling into a negative phase when it has dropped nearly 20% in the last 1 and a half months. .

Currently, this stock is commonly traded around 47,500 VND/unit, 16% lower than a month ago. However, compared to the beginning of the year, the current market price of HPG is still nearly 52% higher.

Zingnews