Vietnam’s leading steelmaker, Hoa Phat Group, will export hot rolled coil to Italy in mid-February, after signing the contract earlier this month
The 35,000-tonne HRC export deal was signed by Hoa Phat Dung Quat Steel Joint Stock Company, marking its first sales of HRC to Europe. According to Tran Ngoc An, a sales department deputy, the steel grade is SAE 1006 and manufactured in accordance with the SAE J 403:2014 standard. Planned delivery time is during 15-20 February 2022.
In 2021, Hoa Phat Dung Quat Steel supplied 2.6 million tonnes of HRC in total, of which less than 30,000t was exported. These exports help Hoa Phat to diversify its consumer market when the domestic market is affected by the Covid-19 pandemic, as well as contributing to foreign currency inflows and Vietnam’s trade balance.
The steelmaker has given priority to the domestic market in terms of its HRC sales, despite rising demand from overseas buyers. This is also its rationale behind investing in the Hoa Phat Dung Quat 2 Steel Integrated Complex project, focusing on producing HRC with a capacity of 5.6m t/year. Hoa Phat’s annual steel production capacity will reach about 14m t/y, including 8.6m t/y of HRC, when the complex comes into full operation, the company says.