Vietnam: Hoa Phat dispatches its first HRC export order to Italy

Vietnamese steel major Hoa Phat has started HRC exports to Italy. The first shipment of 35,000 t of SAE1006 grade is expected to be delivered by mid-Feb’22. The company is looking forward to increasing its HRC production capacity by another 5.6 mtpa with the implementation of Hoa Phat Dung Quat 2 Steel Integrated Complex project.

Hoa Phat’s hot-rolled coils are produced on a modern European continuous-rolling casting line, meeting strict world standards such as ASTM, JIS, GB/T. The coils are used as raw materials for the production of steel pipes, roofing sheets and other special products such as container shells etc.

The Hoa Phat Group has given priority to the domestic market with regard to HRCs, amidst limited availability of the same.

In 2021, Vietnam’s Hoa Phat Dung Quat Steel Joint Stock Company supplied 2.6 million tonnes of HRC coils, of which the export volume accounts for less than 30,000 tonnes. Exports helped Hoa Phat Group diversify its consumer base while the domestic market was affected by Covid. At the same time, it contributes to foreign currency collection and Vietnam’s trade balance.

Vietnam’s steel exports up 33% in CY’21

Despite the slowdown in domestic demand, the substantial growth in exports has made Vietnam a net exporter of steel in 2021. Last calendar, Vietnamese steelmakers had been focusing on expanding exports in response to weak domestic demand, resulting in a significant increase in shipments to overseas markets.

In 2021, Vietnam’s steel exports are expected to rise 33% to about 13 mnt, according to the General Statistics Office of Vietnam. Although exports to China and Thailand fell by about 26% and 33% y-o-y, respectively, Asian countries are still the main export markets for Vietnam’s steel. In addition, Vietnam’s steel exports (mainly flat products) to the United States in 2021 will increase 4.5 times to 1.05 mnt. At the same time, due to the competitive pricing, Vietnam’s steel exports to the EU will also increase significantly in 2021. Among them, exports to Belgium will increase seven times to 860,000 t, and exports to Italy will rise 4.5 times to 550,000 t.