Hoa Phat (HPG) Reports Q1 2026 Steel Sales of 3M Tons, Up 26% YoY

Overview

Hoa Phat Group (HPG) reported Q1 2026 steel sales of 3 million tons, a 26% increase year-on-year, according to its operational update. Crude steel production rose 25% to 3.3 million tons, reinforcing its position as Vietnam’s and Southeast Asia’s largest steel producer. This performance underscores the group’s operational scale amid domestic infrastructure demand and export growth.

Key Facts

• Q1 2026 steel sales volume reached 3 million tons, up 26% year-on-year (YoY).
• Crude steel (billet) production was 3.3 million tons, up 25% YoY and 8% quarter-on-quarter.
• Sales of hot-rolled coil (HRC) exceeded 1.4 million tons, a 48% YoY increase, with nearly 80% consumed domestically.
• The company maintains a 36% domestic market share and exports to over 45 countries.
• Sales of processed steel products grew: steel pipe (241,000 tons, +30% YoY), galvanized sheet (106,000 tons, +19% YoY), and prestressed steel/wire rod (over 62,000 tons, +63% YoY).
• Hoa Phat’s rail and special steel plant in Dung Quat Economic Zone is 35% complete, targeting first rail steel output in 2027.
• The group’s total crude steel capacity is set to reach 16 million tons by the end of 2026.

What Happened

Hoa Phat Group disclosed its Q1 2026 operational results, showing significant volume growth across its product portfolio. The group sold 3 million tons of steel products, including construction steel, high-quality coil, hot-rolled coil, and billet, marking a 26% increase from Q1 2025. Production of crude steel rose 25% YoY to 3.3 million tons. The update, sourced from the company’s release, highlighted strong performance in hot-rolled coil, with sales surpassing 1.4 million tons, up 48% YoY, driven largely by domestic consumption.

The report also detailed progress in downstream segments and strategic projects. Sales of processed steel products like steel pipe and galvanized sheet saw double-digit growth. Notably, Hoa Phat is advancing its rail and special steel plant in Quang Ngai province, which is 35% complete since groundbreaking three months ago, with production slated for 2027 to serve Vietnam’s key railway projects and export markets. The company emphasized its unique position as Vietnam’s sole producer of hot-rolled coil.

Market Context

HPG shares trade on the Ho Chi Minh Stock Exchange (HOSE). The stock closed at VND 28,000 on April 15, 2026, down 1.75% on volume of 27.5 million shares. This price movement occurs against the backdrop of the steel sector’s sensitivity to infrastructure spending and global commodity cycles. Hoa Phat’s Q1 volume growth may be viewed in light of ongoing domestic projects like the North-South Expressway and new bridges, which support demand for its construction and HRC products.

Strategic Significance

The Q1 results reinforce Hoa Phat’s thesis of dominating Vietnam’s steel market through integrated scale and product diversification. The 36% domestic share and export reach to over 45 countries provide revenue stability. The advancement of the rail steel plant targets a high-value, import-substitution niche aligned with state infrastructure plans, potentially reducing Vietnam’s reliance on imported rail materials and capturing long-term contracts from railway developments.

What to Watch

• Q2 2026 earnings release for detailed financial metrics, including revenue and profit margins.
• Monthly sales and production updates to gauge demand sustainability post-Q1.
• Commissioning timeline and contract announcements for the Dung Quat rail steel plant.
• Export volume trends, particularly for HRC and processed products, amid global trade dynamics.
• Raw material cost movements and their impact on HPG’s operational efficiency.