Vietnam’s steel producer Hoa Phat is likely to commence HRC sales in the domestic market in Sep’20 and may start offering cargoes in the global market by the end of 2020.
Hoa Phat will start HRC manufacturing as it completes the second phase of its Dung Quat expansion project, which includes two blast furnaces and a flat rolling complex. The total steelmaking capacity of the second phase is 2mtpa.Hoa Phat plans to offer HRC SAE 1006-1008 to both domestic and export markets, said market participants.
Hoa Phat recorded the highest quarterly profit in Q2 CY ’20 – The company reported a profit of VND 2,756 billion ($120mn) in Q2, 34% higher than the same period last year, making it the most profitable quarter in the last 30 years.
Hoa Phat dispatched a total of 1.51 mn t of construction steel and high-quality rolled steel in domestic and foreign markets in H1 CY’20, up by 12.4% over the same period last year. A large volume of its sales were in South Vietnam.
Vietnam flat steel industry overview – Vietnam’s largest domestic mill – Formosa Ha Tinh – has an installed crude steel capacity of 7MnT p.a. and the usual production level of HRC is at 3,50,000–3,60,000t per month. Vietnam may reduce HRC imports in the medium-term as it expands capacities.
According to the Vietnam Steel Association (VSA), apparent steel consumption of flat steel stood at 13.069 mn t in CY19, up by by 14% against 11.47 mn t in CY18.
Import of semi and finished steel products reached over 21 mn t in 2019. Most shipments were imported from China at 5.143 mn t, followed by India at (2.213mn t), Japan (2.084 mn t), Korea (1.766 mn t), and Taiwan (1.595 mn t)
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