Domestic demand recovers, Hoa Phat construction steel output in January 2022 is 2 times higher than the same period in 2021

In January 2022, Hoa Phat Group achieved a crude steel production output of 707,000 tons, up 5% over the same period. Sales volume reached 631,000 tons, including construction steel, billet, hot rolled coil. In which, construction steel accounted for 382,000 tons, 2 times higher than January 2021. Hot rolled coil also recorded a high volume of 228,000 tons.

In the first month of the year, Hoa Phat construction steel production increased sharply in the domestic market due to increased demand for civil construction and projects before the Lunar New Year. The South and Central regions had the strongest growth, 2 and 3 times respectively over the same period.

By meeting the strict standards of UK Cares, JIS (Japan), ASTM (USA), BS (UK), Hoa Phat high quality construction steel continues to receive large orders in the market. international. Construction steel export volume in January reached 116,000 tons, 3 times higher than the same period in 2021. The main export markets include Singapore, Hong Kong, Canada, Japan, Korea, Cambodia.

According to Mr. Kieu Chi Cong - Director of Hoa Phat Hung Yen Steel Co., Ltd., steel demand in the coming months in the domestic market and export is still high. The company has received maximum export orders for factories in Hai Duong and Quang Ngai until April. With this number of orders, factories must always operate at full capacity to serve market demand. The exploitation of export markets aims to diversify consumption markets, and at the same time contribute to foreign currency collection and balance of trade balance of Vietnam.

For hot rolled coil (HRC) products, the market's demand for this product is increasing day by day. Every month, domestic customers offer to buy more than 300,000 tons of HRC, but at maximum capacity, Hoa Phat can only meet the output of about 250,000 tons. With the world market, Hoa Phat receives orders from the US, Canada, Mexico, Italy, Germany, Korea, Indonesia, etc. However, Hoa Phat's output is not enough to meet the market's demand.

Downstream steel products such as prestressed steel, steel pipes, galvanized steel, and wire drawn steel were also positively received by the market, of which galvanized steel recorded a growth of 68% compared to January 2021.

Hoa Phat's crude steel capacity is currently more than 8 million tons/year, of which 5 million tons of construction steel and 3 million tons of HRC/year. Hoa Phat Group is promoting the implementation of the Hoa Phat Dung Quat 2 Iron and Steel Production Complex project, focusing on producing hot rolled steel coil with a capacity of 5.6 million tons/year. It is expected that when completed in 2025, Hoa Phat's steel production capacity will reach about 14 million tons/year, including 8.6 million tons of HRC.

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