Sales of HRC hot rolled coil continuously break records, Hoa Phat sells out as much as possible
The above-mentioned HRC sales volume increased 24% compared to February 2022 and increased 25% compared to February 2021. According to Mr. Tran Ngoc An – Deputy Sales Department of Hoa Phat Dung Quat Steel, sales volume hit a record mainly thanks to high domestic demand. The Government and localities’ push to disburse public investment capital also stimulate fields that use HRC as raw materials for production such as processing factory structures, manufacturing steel pipes, galvanized steel sheets and other mechanical products. .
On the other hand, in the past time, due to high shipping costs and the impact of the Russian-Ukrainian conflict, the supply of HRC imported from Russia and India to Vietnam faced many difficulties. Therefore, Hoa Phat has increased production of this item to supply the domestic market, contributing to reducing dependence on HRC supply from abroad.
In the first quarter of 2022, Hoa Phat Group has supplied 763,000 tons of HRC to domestic and foreign markets, up 15% over the same period in 2021.
Total consumption of HRC in the previous year was 2.6 million tons, 3 times higher than in 2020.
Photo source: Hoa Phat homepage
Hot-rolled steel coil is a high-value industrial product of Hoa Phat Dung Quat Iron and Steel Production Complex. The complex has an output of 5.6 million tons/year, including 2.6 million tons of steel billet, and 3 million tons of HRC/year. With the advantage of a deep-sea port, Hoa Phat easily supplies products to domestic and foreign markets at competitive prices.
Recalling on September 30, 2017, Hoa Phat Dung Quat Steel Joint Stock Company and Danieli Group (Italy) signed a contract to supply thin Slab billet casting and hot rolled strip steel with a capacity of 3.5 million tons/year. for Hoa Phat Dung Quat Iron and Steel Production Complex Project (Quang Ngai). This is a modern thin-plate casting line, ensuring the highest HRC quality, low energy consumption and environmental friendliness.
At the ceremony that day, Mr. Tran Dinh Long – Chairman of Hoa Phat Group emphasized that the HRC production item is the most important item of the Hoa Phat Dung Quat Iron and Steel Complex project. Chairman of Hoa Phat Group said: “Currently, there is no Vietnamese enterprise that can produce hot-rolled coil steel, which must be imported 100%. Therefore, this will be a new product made by Hoa Phat – the first enterprise. can be produced by Vietnam”.
HRC is also the most important highlight of Hoa Phat Dung Quat. Flat steel products have very strict and strict requirements from the selection of raw materials to the smelting stage and finally the rolling stage. After smelting, the quality steel will be transferred to the QSP Factory, where the continuous casting-rolling process takes place with the input of liquid steel and the output of HRC.
At the Annual General Meeting of Shareholders in 2021, then Chairman Tran Dinh Long was not afraid to “reveal” Hoa Phat’s development plan in the next 10 years, which is to build Hoa Phat Dung Quat 2 Iron and Steel Production Complex. Mr. Long said: “At present, Hoa Phat produces 250,000-300,000 tons of hot-rolled coil every month, but if there is 1 million tons sold out, the demand for steel in the market is very large and long-term”.
Recently, after the signing ceremony of 8 banks to co-finance VND 35,000 billion for Hoa Phat Dung Quat 2 Project, Chairman Tran Dinh Long once again affirmed his certainty about the consumption potential of HRC products.Dung Quat 2 project follows in the footsteps of Dung Quat 1 project. We manufacture hot rolled coils, so far only Formosa Ha Tinh and Hoa Phat can produce, the demand is huge in Vietnam. In 2021, Vietnam will consume about 14 million tons of HRC, which is the product that creates post-steel products such as steel pipes, color coated corrugated iron, automobile manufacturing and leather goods.
In 2021, Hoa Phat and Formosa will produce about 6 million tons of HRC, while the demand will be more than 13 million tons, which is less than 50% of the market demand. Vietnam will become the world’s factory, it’s only a matter of time. Therefore, the demand for HRC will grow by 10% annually, we calculate that by 2025 Vietnam will consume about 16-17 million tons of HRC, if adding 6 million tons of Dung Quat 2, the demand may consumable.
I affirm that HRC is a hot product and has a real demand. Like Dung Quat 1 and Hai Duong before, it was very difficult for us to present to the bank and shareholders, everyone was very worried that there would be an excess of steel, but I reported to the banks that this product has not been released yet. over.“
So far, the HRC consumption figures of Hoa Phat are proving that what Mr. Long said earlier is completely valid.
By Business and Marketing
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
