In February, Hoa Phat Group produced 416,000 tons of crude steel, equal to 60 per cent of the same period in 2022. Its sales volume of construction steel, hot rolled coil (HRC) steel and steel billet reached 475,000 tons, equal to nearly 70 per cent compared to February 2022. The bright spot was that HRC production was more than two times higher than in January.

The HRC production was more than two times higher than in January

Hoa Phat’s consumption of steel products in both domestic and foreign markets decreased over the same period. This reflected two different states of the construction market in early 2022 and 2023. In the first quarter of 2022, the construction steel consumption reached a record high thanks to strong growth in market demand. In 2022, the market was quiet due to weak demand, leading to negative steel consumption. Specifically, construction steel reached 282,000 tons, posting 37 per cent year-on-year decrease. Hoa Phat's HRC recorded 186,000 tons, more than 2 times higher than January 2023 but decreased over 20 per cent compared to the same period last year. With the downstream product HRC, Hoa Phat’s steel pipe consumed 54,000 tons, reducing 31 per cent; coated steel sheet of all kinds reached nearly 27,000 tons, down slightly over the same period last year.

 

Hoa Phat has adjusted its production output flexibly with market demand

In the first 2 months of the year, Hoa Phat Group's crude steel output reached 809,000 tons, posting 42 per cent year-on-year decrease. Sales of construction steel, HRC and steel billet recorded 877,000 tons, down 34 per cent compared to the first 2 months of 2022. In addition, Hoa Phat Group also supplied the market with 107,000 tons of steel pipes, 48,000 tons of coated steel sheets, equivalent to 83 per cent and 68 per cent of the sales volume in the first 2 months of last year. The group's crude steel production capacity currently reaches 8.5 million tons a year, the largest in Southeast Asia. In the upcoming time, the group will continue to closely monitor domestic and foreign market developments to regulate production, ensuring jobs for employees.

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