Hoa Phat's steel sales peaks in June 2023

Hoa Phat's steel sales peaks in June 2023

Steel NewsDate: 18-07-2023 by: Ngan Le

Hoa Phat's steel sales set the highest level in June with the total sales volume of construction steel, hot rolled coil (HRC), and billet reaching 540,000 tons.

Hoa Phat's steel sales volume hit a new peak in June 2023

Construction steel sales in June reached 286,000 tons. Although the volume decreased by 18% compared to June last year, it increased slightly compared to May with construction steel sales reaching 284,000 tons. Hoa Phat's representative said that the increase in sales volume mainly came from strong consumption demand in the central and southern regions of Vietnam, in which the demand in the South increased by 69% when compared to May.


Hoa Phat steel output statistics from January to June 2023

The output of HRC (hot rolled coil) in June also recorded positive signals when it reached 251,000 tons and increased slightly by 3% compared to the previous month. Generally, HRC consumption volume in June reached the highest level since November 2022 and increased by 24% compared to the same period last year. Demand for input materials at steel pipe and galvanized steel pipe factories in the North and Central regions has contributed to a significant improvement in HRC output,

Besides, steel pipes and galvanized steel products also showed a specific growth when both of them reached 60,000 tons and 39,000 tons. Specifically, galvanized steel products achieved a growth rate of 42% compared to June 2022.

Overview of Hoa Phat’s steel sales and  production capacity in 6 months of 2023

In the first 6 months of 2023, the total volumes of construction steel Hoa Phat supplied to the market reached 1.6 million tons and decreased by 30% compared to the first 6 months of 2022. Hoa Phat's HRC sales volume in 6 months including both domestic and foreign markets reached 1.2 million tons, overall HRC output decreased by 15% compared to the same period last year. Hoa Phat steel pipe and corrugated iron achieved output of 325,000 tons and 175,000 tons, down slightly compared to the first 6 months of 2022.


Total steel sales of Hoa Phat in the first 6 months of 2023

According to the 6-month accumulation, the total sales volume of 5 main products at Hoa Phat including construction steel, HRC and steel pipes, galvanized sheet, and steel billet reached 3.4 million tons and decreased by 25% compared to the total output in the same period last year.

Regarding crude steel production capacity, Hoa Phat's total crude steel output in 6 months of 2023 reached 2.86 million tons and decreased by 34% compared to 6 months of last year (nearly 4 million tons of crude steel).

Forecasting the opportunities of the Vietnam steel market at the end of 2023

The situation of crude steel production in the first 6 months of 2023 is not very favorable compared to last year due to unsatisfactory consumption demand and high input material costs that have made many manufacturers forced to cut. However, crude steel consumption from January 2023 to June 2023 showed stability and showed signs of gradual recovery.


Vietnam crude steel production and consumption in 6 months 2023

Although there are many challenges, the construction industry is expected to revive domestic steel consumption in the second half of 2023. The Ministry of Construction recently promoted construction investments remaining in 2022 and implemented more civil house construction plans in 2021-2030. Supported decisions from the Government help domestic steel manufacturers have the opportunity to solve the problem of consumption demand.

The only bright spot at the moment is the export situation of HRC with export volume in May hitting a record of more than 390,000 tons. It is estimated that HRC's export volume in the first 6 months of 2023 will reach nearly 1.7 million tons; this is a signal showing the intense competitiveness of HRC from Vietnamese steel producers compared to international competitors.

The policies of construction projects in late 2023 as well as the bright spot in HRC exports have raised the expectation of a strong recovery of Vietnam's steel industry. The promotion of HRC exports has helped manufacturers deal with inventories when domestic demand is not enough and moreover, Vietnam has more foreign currency revenue to nicely balance the influence of the foreign exchange rate.