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

Overview

Hoa Phat Group (HPG) reported strong operational results for the first quarter of 2026, with total steel sales volume reaching 3 million tons, a 26% increase compared to Q1 2025. The company’s hot-rolled coil (HRC) sales volume surged 48% year-over-year, underscoring robust demand for its high-value products. As Vietnam’s largest steel producer, these figures reinforce HPG’s dominant market position and execution capacity.

Key Facts

• Q1 2026 steel sales volume: 3 million tons, up 26% year-over-year (YoY).
• Hot-rolled coil (HRC) sales volume: over 1.4 million tons, up 48% YoY.
• Domestic market share maintained at 36%; products are present in over 45 countries.
• Sales of steel pipe reached 241,000 tons (up 30% YoY); galvanized sheet reached 106,000 tons (up 19% YoY).
• Crude steel production in Q1 2026: 3.3 million tons, up 25% YoY.
• New rail and special steel plant in Dung Quat Economic Zone is 35% complete, targeting first rail steel output in 2027.
• HPG is the only Vietnamese company producing HRC, with a total crude steel capacity of 16 million tons expected by end-2026.

What Happened

According to the company’s operational update, Hoa Phat Group achieved significant volume growth across its product portfolio in the first quarter of 2026. Total steel sales reached 3 million tons, driven by a 48% surge in hot-rolled coil sales to over 1.4 million tons. Construction steel and high-quality steel coil sales also rose 20% year-over-year to 1.4 million tons. The company reported that nearly 80% of its HRC sales were in the domestic market, with the remainder exported to 20 countries across Asia, Europe, the Americas, and Africa.

The update also highlighted progress on the company’s diversification strategy. HPG is advancing construction of a rail and special steel plant at the Dung Quat Economic Zone in Quang Ngai province. The project is reported to be 35% complete three months after groundbreaking, with first rail steel production targeted for 2027 to serve key Vietnamese railway projects and export markets. The company continues to supply major infrastructure projects, including Tan Son Nhat Airport expansion, North-South Expressway, and My Thuan 2 Bridge.

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. The reported operational strength comes amid ongoing volatility in the steel sector, influenced by global commodity prices and domestic infrastructure spending. HPG’s volume growth and market leadership provide a fundamental counterpoint to near-term price fluctuations.

Strategic Significance

The Q1 2026 sales data validates HPG’s focus on high-margin product segments like HRC and downstream processed steel. The 48% surge in HRC sales, where HPG holds a domestic monopoly, enhances revenue quality and reduces reliance on lower-value construction steel. The progress on the rail steel plant represents a strategic move into a specialized, import-substitution market aligned with Vietnam’s national infrastructure plans, potentially opening a new long-term growth channel.

What to Watch

• Q1 2026 financial results release for detailed revenue and profit figures.
• Quarterly updates on HRC export volumes and pricing trends.
• Construction milestones and capital expenditure details for the Dung Quat rail steel plant.
• Domestic steel demand indicators from key infrastructure project disbursements.
• Updates on the company’s crude steel capacity ramp-up toward 16 million tons by end-2026.