Vietnam-based Hoa Phat steel forecasts to increase its exports of steel pipes and corrugated iron by 20pc to 30,000mt in 2020, from the year prior. The completion of a dedicated Hoa Phat Dung Quat seaport which is capable of handling 200,000mt of ship tonnage is also likely to support exports in coming days.
In Jan 2020, Hoa Phat exported 27,000mt of finished steel products and 60,000mt of billets. In 2019, Hoa Phat’s exports of construction steel were at 265,000mt, up 11.3pc from 2018.
Around half of the steelmaker’s total exports or 151,000mt went to Cambodia, which depends on its neighbour Vietnam for steel products. Vietnam is benefitted by the low transportation costs and the underdeveloped local steel industry in Cambodia.
Japan was the second-largest export market where Hoa Phat exported 55,000mt of steel, followed by Canada with 20,000mt. Other importers in 2019 included the United States, Australia and Malaysia.
Production and Sales
Hoa Phat Steel sold 175,800mt of construction steel in Jan 2020, according to the company reports. Company’s total crude steel output increased marginally to 280,000mt from all of its steel plants in Hai Duong, Hung Yen and Dung Quat.
The impact of calendar New Year holidays in the first half of January and Lunar New Year or the Tet holidays in January-end had limited impact on production, according to the company.
In the southern region, the consumption of Hoa Phat construction steel in 2019 rose by 41pc to 34,571mt from the year prior, as the supply from newly built Hoa Phat Dung Quat iron and steel complex increased. Hoa Phat Steel supplied 90,500mt construction steel in the northern region and 23,800mt in the central region.
Hoa Phat targets to increase its production to 4mn mt crude steel and the export 400,000mt of construction steel in 2020. Apart from construction steel, Hoa Phat is promoting exports of other steel products such as steel pipes, corrugated iron, steel drawn wire, galvanized steel wire, prestressed steel.