Hoa Phat (HPG) Crude Steel Output Surges 48% in Q2 2026, Hits 3.6M Tons
This Aveluro analysis covers HPG on HOSE in the Basic Resources sector. The classified event type is production disruption, with positive sentiment and a deterministic market-impact score of 8.4/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from CafeF - Doanh nghiệp, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Hoa Phat Group (HPG), Vietnam’s largest steelmaker, reported a 48% year-on-year increase in crude steel output for Q2 2026, reaching over 3.6 million tons. The company’s first-half 2026 production totaled nearly 7 million tons, up 36% from the same period in 2025. Sales of hot-rolled coil (HRC), construction steel, high-quality steel, and billet reached 6.5 million tons in H1, a 32% increase. The results highlight HPG’s continued capacity expansion and strong demand both domestically and internationally.
Key Facts
- Q2 2026 crude steel output: 3.6 million tons, up 48% YoY and 9% QoQ.
- H1 2026 crude steel production: nearly 7 million tons, up 36% YoY.
- H1 2026 sales of HRC, construction steel, high-quality steel, and billet: 6.5 million tons, up 32% YoY.
- Q2 2026 HRC sales: 1.9 million tons, up 64% YoY and 31% QoQ.
- Construction steel and high-quality steel sales in Q2: 1.3 million tons, up 2% YoY but down 9% QoQ.
- HPG maintains 36% market share in Vietnam’s construction steel market and exports to over 45 countries.
- H1 2026 steel pipe sales: 453,000 tons (+13% YoY); coated steel sheet sales: 189,000 tons (-5% YoY).
What Happened
According to the company’s production update, Hoa Phat Group’s crude steel output in Q2 2026 reached 3.6 million tons, a 48% increase compared to Q2 2025 and a 9% rise from Q1 2026. The strong performance was driven by robust demand for HRC, which saw sales of 1.9 million tons in Q2, up 64% year-on-year. Domestic consumption accounted for 80% of HRC sales, while exports reached 20 countries across Asia, Europe, the Americas, and Africa.
In the first half of 2026, HPG produced nearly 7 million tons of crude steel, up 36% from the same period in 2025. Total sales of finished steel products (HRC, construction steel, high-quality steel, and billet) reached 6.5 million tons, a 32% increase. The company also reported sales of 453,000 tons of steel pipes (+13% YoY) and 189,000 tons of coated steel sheets (-5% YoY). HPG remains the only Vietnamese producer of HRC, and in early 2026 it began exporting high-grade HRC grades such as J55, X70, and S700MC to the US and Europe for oil and gas and mechanical engineering applications.
Market Context
HPG shares closed at VND 22,950 on July 10, 2026, down 1.08% on volume of 11.9 million shares. The stock has been under pressure amid global steel price volatility and trade policy uncertainties, but the strong production data may provide fundamental support. HPG is listed on HOSE and is the largest steel company in Vietnam by market capitalization. The steel sector has faced headwinds from oversupply in China and anti-dumping investigations in some export markets, but HPG’s diversified product mix and growing export footprint have helped mitigate these risks.
Strategic Significance
HPG’s record output underscores its successful capacity expansion strategy, particularly in HRC, where it holds a monopoly in Vietnam. The company’s ability to produce high-grade HRC for specialized applications (oil and gas, automotive) positions it to capture higher-margin segments and reduce reliance on construction steel. The 64% YoY surge in HRC sales suggests strong demand from domestic manufacturing and export markets, including the US and Europe. HPG’s market share leadership in construction steel (36%) provides a stable base, while its expanding export network (45+ countries) diversifies revenue sources. The slight QoQ decline in construction steel sales (-9%) may reflect seasonal factors or competition, but overall the trend remains positive.
What to Watch
- Q2 2026 earnings release (expected late July) for net profit and margin data.
- Global steel price trends, especially HRC prices in Asia and export markets.
- Updates on HPG’s capacity expansion projects, including the Dung Quat 2 complex.
- Trade policy developments: potential anti-dumping duties on Vietnamese steel in the US or EU.
- Domestic construction demand trends, as infrastructure spending and real estate recovery could boost construction steel sales.