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.
