Vietnam's leading steelmaker Hoa Phat Group is exporting hot rolled coils to Italy in mid-February, after signing the contract earlier this month.
The 35,000-ton HRC export agreement was signed by Hoa Phat Dung Quat Steel Joint Stock Company, making the first HRC sales to Europe. According to Tran Ngoc An, assistant sales department, the steel grade is SAE 1006 and is manufactured to SAE J 403:2014 standard. The planned delivery time is from February 15-20, 2022.
In 2021, Hoa Phat Dung Quat Steel supplied a total of 2.6 million tons of HRC, of which less than 30,000 tons were exported. These exports help Hoa Phat 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.
Despite the increasing demand from overseas buyers, the steelmaker gave priority to the domestic market in HRC sales. This can also be seen as the reason behind its investment in the Hoa Phat Dung Quat 2 Steel Integrated Complex project, which focuses on HRC production with a capacity of 5.6 million tons/year. The company says that once the complex is fully operational, Hoa Phat's annual steel production capacity will reach approximately 14 million tons/year, including 8.6 million tons/year HRC.
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