Hoa Phat Group opens up business deals with four largest Australian iron ore producers
By Nga Vu
December 13, 2017 | 07:24 AM GMT+7
In order to create a stable and long-term supply source of iron ore for steel mills, Hoa Phat Group (Hoa Phat) has worked with the four largest iron ore producers in Australia, according to the Group.
Australia is the world's largest exporter of iron ore
Currently, Brazil's Vale SA, the world’s biggest producer of iron ore, is a regular supplier of Hoa Phat. In addition, Hoa Phat has established new cooperation with Australian producers of iron ore, namely Rio Tinto (329 million tons per year), BHP (227 million tons per year), FMG (170 million tons per year) and Royhill (55 million tons per year).
In 2016, Australia exported about 808 million tons of iron ore in the year, accounting for 55 per cent of all iron ore transactions worldwide.
It is expected that material purchase contracts of Hoa Phat Dung Quat Steel JSC (Hoa Phat’s subsidiary) will be completed before the quarter II of 2018. The first shipment is expected to be delivered in the fourth quarter of 2018.
According to the design, the wharf at Hoa Phat Dung Quat Steel Complex can receive 120,000-ton vessels by the end of 2018 and receive ships weighing up to 150,000 tons by the end of 2019. This is an advantage for Hoa Phat to purchase iron ore sold at the same price by the large worldwide steel companies.
Hoa Phat said that the establishment of relations with the five largest worldwide iron ore producers has opened up new prospects regarding purchase methods and created a stable and good source of iron ore with the better quality and at the lowest price to Hoa Phat Dung Quat Steel Complex.
Furthermore, it helps reduce production cost, increase competitiveness of Hoa Phat’s steel products on domestic and foreign markets.
In the first 11 months of this year, Hoa Phat sold 1.95 million tons of steel, up 23.7 per cent over the same period last year. Hoa Phat is leading the domestic market with a market share of 24 per cent.
Besides, Hoa Phat has sold about 50,000 tons of billets to local and foreign markets. The total volume of billets produced by the Group in the recent 11 months exceeded two million tons, higher than the design capacity.
Hoa Phat has been selected as a supplier of steel to many large projects such as Ha Long - Van Don Expressway, Quang Ninh Airport, Thanh Son Hydropower Plant (in Thanh Hoa province), Ecopark, Da Nang - Quang Ngai expressway, Hoi An Casino (Quang Nam), etc.
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