Social distancing hits Hoa Phat’s construction steel sales

Posted on 10 September 2021

Many Vietnamese localities such as Hanoi, Ho Chi Minh City and the southern provinces have increased social distancing and other lockdown restrictions. Hoa Phat’s construction steel and steel pipe volumes fell as a result in August, the firm says. Monthly production and sales of all steel products meanwhile remained stable.

Hoa Phat sold 690,000 tonnes of steel products in August, up 15% month-on-month, but construction steel sales alone dropped 26% m-o-m and 17% year-on-year to 268,000t. The two figures reached 5.6 million t and 2.5mt in the first eight months of 2021, up 47% and 16% y-o-y respectively.

August production of crude steel fell 2.7% m-o-m to 681,000t, but was up 40% on-year. Total production over January-August increased 56% from the corresponding period last year to 5.4mt.

This is in line with blast furnace production estimates in Kallanish's South East Asia Steel Markets Report, which showed hot metal output at the Dung Quat plant in August down 2.7% m-o-m in August. There was however a slight increase in output at the Hai Duong plant thanks to strong billet export sales. This data is based on satellite-based activity data provided by TathyaEarth.

Hoa Phat stated again that its crude steel capacity is currently 8 million tonnes/year, of which 62.5% and 37.5% is construction steel and hot rolled coil respectively. However, if the company continues to produce at the previous monthly production rate in the coming months, its annual crude steel output would reach 8.1mt.

Source : Kallanish