Hòa Phát's steel sales decrease in January due to low demand

Sunday, Feb 04, 2024 12:37

A Hòa Phát staff member at work. — VNA/VNS Photo

Hòa Phát Group sold nearly 693,000 tonnes of construction steel, hot rolled steel and high-quality steel in January, down 16 per cent month-on-month. 

Notably, 363,000 tonnes of construction steel were sold in the first month of this year, down 22 per cent month-on-month. 

The group blamed the on-month decline in steel sales in January on low demand as the Lunar New Year holiday nears. 

During the month, Hòa Phát produced 693,000 tonnes of raw steel, an on-month rise of 7 per cent. 

With its capacity to produce 8.5 million tonnes of crude steel per year, Hòa Phát holds the largest market share in Việt Nam for construction steel and steel pipes, the top five manufacturers of galvanised steel.

The company said this year it will continue to regulate production by market demand and speed up the construction of the Hòa Phát Dung Quất 2 iron and steel complex project. To date, 45 per cent of the workload of the complex has been fulfilled. Once completed, the group’s steel production capacity is expected to exceed 14 million tonnes of crude steel per year, positioning Hòa Phát among the top 30 largest steel companies globally by 2025.

The firm reported a record-high revenue of VNĐ34.9 trillion (over US$1.42 billion) in the fourth quarter of 2023, up 33 per cent year-on-year. In the period, Hòa Phát posted an after-tax profit of VNĐ2.97 trillion, up 249 per cent compared to the same period of 2022 and 48 per cent on-quarter.

In 2023, the group manufactured 6.7 million tonnes of crude steel, an on-year drop of 10 per cent. It sold 6.72 million tonnes of construction steel, hot rolled steel and high-quality steel, down 7 per cent from the previous year.

Hòa Phát’s steel exports have been expanded to 39 countries and territories worldwide. — VNS

Comments (0)