The government of Vietnam has not made a decision on banning exports of steel ingot, Deputy Minister of Ministry of Industry and Trade Le Duong Quang June 12 said at a meeting to discuss exporting steel ingot and steel products.
The ministry wanted to find measures to limit exports of steel to ensure the domestic demand for construction materials while ensuring steel businesses do not fall into difficult situations, Quang was quoted by the Vietnam News Agency as saying.
Steel prices have dropped in the domestic market due to a reduction in demand. Prices are higher in other countries, so businesses have stored domestic steel for re-export.
The Vietnam Steel Association said that in May there were a mere 10,000 tons of steel exported.
More than 1,244,100 tons of steel were forecast to be imported to Ho Chi Minh City in the first half of this year, of which 236,789 tons of steel had been re-exported to other countries, according to the Customs Department.
Businesses said they were forced to reexport as they could not sell the product on the domestic market because the government had lowered the targeted growth rate in an effort to curb inflation, resulting in a delay in many construction projects.
Recently, Vinh Loi Steel and Cast Iron Co, Dinh Vu Steel and Hung Yen Steel have signed a contract to export about 60,000 tons of steel ingot to Thailand, Malaysia, and the Philippines in June.
Vietnam steel ingot export price is at $900 per ton, about $30 – $50 per ton cheaper than Chinese steel ingot export price.
In addition, businesses have begun to re-export scrap steel as the price in the domestic market stays around $475-$500 per ton while exports to Thailand are $600 per ton. (VNA)
Vietnamese
