Vietnam’s Hoa Phat starts HRC production, to begin spot sales in late 2020

Wednesday, 06 May 2020 17:26:31 (GMT+3)   |   Istanbul
       

Vietnam-based long steel and pipe producer Hoa Phat Group started trial production at its new HRC line in April. However, the producer will enter the HRC spot market only close to the end of the year, sources have said.   

HRC production is part of the second phase of its Dung Quat project, which includes two blast furnaces and a flat rolling complex. The total steelmaking capacity of the second phase is 2 million mt per year. “For now it is only the trial production,” a market source said. According to sources, one to three months will be needed to resolve quality issues.

“They are currently supplying to Hoa Phat Pipe factory - their subsidiary,” a source close to the company said. Hoa Phat Group has not offered to the spot market yet. “They are expected to provide HRC SAE 1006-1008 to the market at the end of the year,” a Vietnamese trader told SteelOrbis.

The launch of the blast furnace No. 3 at the Dung Quat project is expected in the June-July period.

At the moment, Hoa Phat Group is the main long steel supplier in the Vietnamese market and it has also become a large billet exporter this year with monthly sales at 183,000 mt in April.  

In the first phase of the Dung Quat project, the capacity is mostly focused on long products, such as rebar and wire rod, while Hoa Phat Group has started to provide some billet for the export market. In the second phase, the company will add hot rolled coil, and HDG in time, to its portfolio and will be able to provide more crude steel for long steel production. HRC is expected to be sold in both domestic and export markets. 


Similar articles

US sheet prices tick up modestly ahead of Easter weekend

28 Mar | Scrap & Raw Materials

Flat steel prices in local Taiwanese market - week 13, 2024

28 Mar | Flats and Slab

European HRC prices keep falling, demand still shows signs of fatigue

28 Mar | Flats and Slab

Vietnam’s Hoa Phat and Formosa seek AD investigation on Chinese HRC

28 Mar | Steel News

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

UAE’s HRC market still sluggish, offers from India fall slightly

27 Mar | Flats and Slab

Import HRC prices in Vietnam retreat again due to slump in China

27 Mar | Flats and Slab

Vietnam’s Hoa Phat produces nine millionth mt of HRC

27 Mar | Steel News

Major steel and raw material futures prices in China - March 27, 2024

27 Mar | Longs and Billet

HRC consumption in Mexico up 30.6 percent in January

26 Mar | Steel News