Vietnam-based steel producer Hoa Phat Group has announced that its consolidated revenue in the first quarter of the current year amounted to VND 19.45 billion ($824.35 million), increasing by 28 percent compared to the same period of the previous year. In the given period, the company’s net profit rose by 27 percent year on year to VND 2.3 billion ($97.62 million) owing to the steel and agriculture sectors.
Meanwhile, in the first quarter of 2020, Hoa Phat Group’s finished steel output amounted to over 732,000 mt, accounting for 31.9 percent of the domestic market, while its finished steel exports increased by 74.8 percent year on year to 135,000 mt. The company’s billet output, which is exported mainly to key markets like China and Southeast Asian countries, totaled almost 350,000 mt.
Hoa Phat said that in March this year Hoa Phat supplied 486,000 mt of finished steel and steel billet to both local and international markets. Hoa Phat Steel Pipe’s finished product sales amounted to 145,000 mt, having a 31.1 percent share of the domestic market. In the first quarter of 2020, Hoa Phat Steel Pipe’s export volume rose rapidly, up 2.5 times over the same period last year. The export volume in March alone exceeded exports in January and February combined, despite the negative impact of the Covid-19 pandemic, lower demand and decreasing HRC prices.
Hoa Phat Group plans to start up the hot rolled coil line at the Hoa Phat Dung Quat Steel Integrated Complex project this year. Hoa Phat stated that the project’s phase 2 has been delayed as force majeure has been declared amid the coronavirus outbreak.
Moreover, Hoa Phat agreed with Italian plantmaker Danieli for supply of a new wire rod rolling mill which will be installed at the Dung Quat complex, according to a press release by Danieli. The new wire rod rolling mill will have a one million mt per year capacity. It will be the third rolling mill for long products at Dung Quat - all of them supplied by Danieli. The company will be able to produce 5.5-25 mm diameter wire rod coils, in low, medium and high-carbon grades after the launch of the new mill.