Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Vietnamese steel producer Hoa Phat recorded the highest ever monthly crude steel production of above 670,000mt in January, up by 67pc from January 2020. The company strengthens its market share with the launch of a new HRC facility and its promotion in the domestic and export markets. 


The production lift in January was led by the HRC output which grew highest to 252,000mt, up by 48pc compared to December 2020. Finished construction steel output rose to 186,000mt, up by 6pc over the same period the prior year.


Hoa Phat’s total finished steel sales including finished construction steel, billet and hot rolled steel coil (HRC) reached 577,000mt. 

Bullish demand from overseas buyers pushed exports in January. The steelmaker exported 37,000mt of finished steel, an increase of 38pc compared to January 2020. 


Billet sales, including exports, reached 140,000mt in January, up by 40pc from the prior January.


New facility adds capacity

The commencement of the 4th blast furnace of Hoa Phat Dung Quat Iron and Steel Production Complex on Jan 6 raised the total crude steel output of the group of companies to 8mn mt per annum. Earlier two blast furnaces were fired up in June and November 2019, and the third in August 2020.


In 2020, the total output almost doubled from a year ago surpassing 5.8mn mt. In 2021, the steelmaker targets to lift HRC output to 2.7mn mt and over 5mn mt of construction steel. Revenue totaled VND91.3bn ($3.95bn) in 2020, up 41pc from a year prior. 


Despite the pandemic, Vietnam’s crude steel production rose to 19.5mn mt in 2020, up by 11.6pc from the prior year, according to Worldsteel Association. 

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