HRC steel production capacity increases - Vietnam joins a promising game
Steel NewsDate: 18-05-2023 by: Nhu Quynh
In the past, Vietnam imported all hot rolled coil from foreign countries. However, with large investment, enterprises in Vietnam have become self-sufficient in hot rolled coil steel production capacity to meet market demand.
Assessment of Vietnam's HRC steel production capacity
Vietnam's steel production capacity has increased sharply since the 2010s. With a long-term vision and strategy, the assessment of the world and domestic market demand for hot rolled coil products is very high compared to before, especially as China is putting pressure on global hot rolled coil supply. Many Vietnamese enterprises have decided to invest in hot rolled coil production and make this product a major export in the future.
Hot rolled coil is one of the steel products that Vietnam has not been able to produce before. The proactive production of hot rolled coil also helps Vietnam become more self-reliant in its steel production capacity. Actively source input materials for the production of steel pipes, galvanized corrugated iron, container casings, shaped steel, and industrial steel, providing high-quality products at competitive prices for other mechanical factories in Vietnam. Currently, in the Vietnamese market, only 2 enterprises, Formosa Ha Tinh Steel Corporation and Hoa Phat Group, can produce this product. This is the pride and a product that demonstrates the maturity of Vietnam's steel industry.
Formosa - Vietnam’s leading HRC steel production capacity
Formosa Ha Tinh Steel Corporation is one of the factories with large steel production capacities in Vietnam. Formosa is the largest closed iron and steel complex in Southeast Asia today. The first smelter began to be commissioned to produce billets in May 2017. Formosa Ha Tinh Corporation is a pioneer in hot rolled coil manufacturing in Vietnam. December 25, 2015 Formosa Ha Tinh Corporation has launched a hot rolled coil product; this is the first time hot rolled coil is produced in the Vietnam market.
Currently, Formosa's hot rolled coil steel production capacity still leads the market, but it has lost its unique position when it has to share market share with Hoa Phat. Formosa's main market is still the South, with more than 60% of the consumption in this market. Formosa is known as a private enterprise that builds facilities, machinery systems, and lines to produce steel from iron ore with high quality and on a large scale to meet domestic and export steel demand. Currently, with 2 furnaces, Formosa has raised its total steel production capacity to about 7 million tons per year.
Hoa Phat - The leading HRC steel production capacity in Vietnam
Hoa Phat is one of the enterprises with the largest steel production capacity in Vietnam. Besides Formosa, Hoa Phat is the only domestic enterprise that can produce hot rolled steel coils. At Hoa Phat Dung Quat Iron and Steel Production Complex (the Complex), hot rolled coil is the most important highlight. In January 2021, after 4 blast furnaces came into operation, hot rolled coil became a strategic product for Hoa Phat's new development cycle. May 2, 2020, Hoa Phat launched the first batch of hot rolled coils, this is an important event marking the outstanding steel production capacity of Hoa Phat Group. 8/2022, after nearly 3 years of operation, the 5 millionth tonne of hot rolled coil has been produced at Hoa Phat Iron and Steel Complex, thereby affirming the No. 1 position of Southeast Asian steel manufacturers.
Hoa Phat's investment in the production of hot rolled coil contributes to helping domestic enterprises to be self-sufficient in raw materials and increase steel production capacity. Hoa Phat will implement the Hoa Phat Dung Quat 2 Iron and Steel Complex project with a capacity of 5.6 million tons of hot rolled coil/year, bringing the total annual hot rolled coil capacity to 8.6 million tons from 2025.
Hot rolled coil production output is increasing with stable quality according to JIS G3101-2017 (Japan) and SAE: J403-14 (USA) standards. Besides satisfying domestic partners and customers, Hoa Phat's hot rolled coil has been exported to markets such as the US, Mexico, EU, Malaysia.... In 2022, Hoa Phat's hot rolled coil sales volume will reach more than 2.6 million tons, bringing Hoa Phat's total steel production capacity to 8.5 million tons of steel/year.
