In February 2024, Hoa Phat Group (stock code: HPG) produced 690,000 tonnes of crude steel, equivalent to the previous month. Sales volume of hot-rolled coil (HRC), construction steel, high-quality steel and steel billets reached 518,000 tonnes, a decrease of 19% compared to the first month of the year but an increase of 9% compared to the same period last year.
The consumption of Hoa Phat steel decreased mainly due to the extended Lunar New Year holiday combined with the general market demand which has not been improved. Construction steel and high-quality steel recorded 212,000 tonnes, a decrease of 42% compared to January 2024. Hoa Phat also supplied over 38,000 tonnes of steel billets to the domestic and international markets, with exports contributing 25,000 tonnes.
HRC steel reached 266,000 tonnes, a 3% decrease compared to the previous month, mainly due to the decline in export market compared to the first month of the year. The domestic market still recorded an increase in production in all three regions.
In addition, Hoa Phat also supplied 41,000 tonnes of steel pipes and 32,000 tonnes of galvanized steel, a decrease of 15% and 5% respectively compared to the first month of the year.
In the past two months, Hoa Phat Group produced 1.38 million tonnes of crude steel, an increase of 71% compared to the same period last year. Sales of HRC steel, construction steel, high-quality steel and steel billets reached 1.15 million tonnes, an increase of 32% compared to the same period.
Of which, construction steel and high-quality steel reached 575,000 tonnes, a 2% decrease compared to the first two months of 2023. HRC steel contributed 542,000 tonnes, doubling compared to the same period last year.
With the downstream products of HRC steel, Hoa Phat recorded 88,000 tonnes after two months, a decrease of 17%. The production of various galvanized steel reached 66,000 tonnes, an increase of 39%, mainly thanks to the better export volume of galvanized steel in the past two months compared to the same period in 2023.
According to the Vietnam Steel Association’s report, Hoa Phat holds the highest market share in Vietnam for construction steel and steel pipes with 36% and 25.27%, respectively, at the end of January 2024.
At the end of the trading session on March 5, HPG shares reached a price of 31,150 VND/share, an increase of 36% in the past six months. Moreover, this is also the highest price that this stock has reached since May 2022.
At the beginning of March, Hoa Phat Group signed a memorandum of understanding for the investment research of three projects in Nam Phu Yen Economic Zone (Phu Yen Province) with an expected total investment capital of more than 120,000 billion VND (nearly 5 billion USD).
These projects include Bai Goc Port (about 24,000 billion); Investment in the construction and operation of infrastructure for Hoa Tam Industrial Zone (13,300 billion); Hoa Phat Steel Complex project at Hoa Tam Industrial Zone (86,000 billion).
The company’s leadership believes that these projects will create a driving force, promote the socio-economic development of the province, solve employment for 20,000 workers in Phu Yen, and contribute about 10,000 billion VND to the local budget each year.
