According to information from Hoa Phat Group, in the past February, Hoa Phat produced 416,000 tons of crude steel, equal to 60% compared to the same period in 2022. The sales volume of construction steel, hot-rolled coil steel (HRC), and steel billets reached 475,000 tons, nearly 70% compared to February 2022.

Additionally, Hoa Phat also supplied the market with 107,000 tons of steel pipes and 48,000 tons of various galvanized steel sheets, achieving 83% and 68% respectively in comparison to the sales volume from the first two months of the previous year.

A representative of Hoa Phat noted that the consumption of steel products in both domestic and international markets decreased compared to the same period. This reflects two different market conditions for the construction sector in early 2022 and 2023. While in the first quarter of 2022, steel consumption reached a record high due to strong market demand, in 2023, the market is subdued due to weak demand, resulting in unfavorable steel consumption levels.

Specifically, construction steel reached 282,000 tons, a 37% decrease compared to February 2022. Hoa Phat's HRC recorded 186,000 tons, more than double compared to January but still down over 20% compared to the same period last year. As for lower-grade HRC products, Hoa Phat steel pipes consumed 54,000 tons, a 31% decrease, while various galvanized steel sheets achieved nearly 27,000 tons, showing a slight decrease compared to the same period.

Cumulatively, in the first two months of the year, Hoa Phat Group's crude steel production only reached 809,000 tons, a 42% decrease compared to the same period. Sales of construction steel, HRC (Hot Rolled Coil), and steel billets totaled 877,000 tons, a 34% decrease compared to the first two months of 2022.

"Our current crude steel production capacity stands at 8.5 million tons per year, the largest in the Southeast Asia region. In the coming period, we will continue to closely monitor market developments both domestically and internationally to adjust production accordingly to ensure employment for our workers," stated a representative from Hoa Phat.

In the updated report on the steel industry's prospects for 2023, SSI Research forecasts that domestic demand may continue to weaken due to the stagnant real estate market and strict monetary policies. The progress of ongoing projects might also slow down due to liquidity issues faced by real estate developers.

Meanwhile, the household sector (which had the potential for better recovery) could be affected by the overall economic downturn, higher unemployment rates, and increased interest rates. Therefore, the domestic demand for finished steel products may decline to some extent in 2023.