Hoa Phat steel sales fall by 42% in October
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Hoa Phat Group’s sales plummeted by 42% year-on-year in October to 492,000 tons as domestic and global steel demand continued to fall.
According to monthly data from Vietnam’s largest steel company, this is its lowest sales volume since February 2021.
Construction steel sales fell by 45% year-on-year to 210,000 tons.
Hot-rolled coil steel sales however rose 30% to 267,000 tons as the company was able to export large volumes to Indonesia and Malaysia.
Several media reports have said the company is set to shut down four blast furnaces starting this month as market demand remains sluggish.
HPG shares have fallen by nearly 30% this year to around VND13,800.
Analysts at SSI Securities said in a recent note that weakening steel demand would remain a challenge for the company.
Questions & Answers
Q.What is the primary reason given for Hoa Phat Group's significant drop in steel sales?
What is the primary reason given for Hoa Phat Group's significant drop in steel sales?
The main reason stated for the sales decline is a continued fall in both domestic and global steel demand. Sales plummeted by 42% year-on-year in October, reaching 492,000 tons, their lowest volume since February 2021.
Q.Which specific steel product saw a sales increase despite the overall downturn, and why?
Which specific steel product saw a sales increase despite the overall downturn, and why?
Hot-rolled coil steel sales rose by 30% to 267,000 tons. This increase was due to the company successfully exporting large volumes of this product to both Indonesia and Malaysia, offsetting other decreases.
Q.What potential operational change is Hoa Phat Group reportedly considering in response to the market conditions?
What potential operational change is Hoa Phat Group reportedly considering in response to the market conditions?
Several media reports indicate the company is set to shut down four blast furnaces starting this month. This measure is reportedly being considered because market demand for steel remains sluggish.
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