On the morning of May 12, HPG shares of Hoa Phat Group fell 2.4% to 25,050 VND/share amid rumors of a fire at the Hoa Phat Dung Quat plant. The company confirmed that blast furnace No. 1 faced a liquid iron leak, a minor issue previously encountered, which is not serious. Management estimates that repairs will take 1-2 weeks at a negligible cost. According to SSI securities, the outage will reduce output by about 60,000 tons, but with one month of inventory, total sales production should not be affected if the furnace is restored promptly. The overall impact is expected to be minimal.
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