Vietnam Advised to Halt Licensing New Steel Projects on Oversupply Fear
The Vietnam Steelmaker Association has just proposed the government of Vietnam to halt licensing steel projects which do not belong to the country’s steel development plan in 2007 and 2015, a vision to 2025 on concerns about oversupply.
Under the plan, Vietnam’s steel demand is expected to hit 10 million to 11 million tons each year by 2010 and 20 million a year by 2020, however, Vietnam authorities had licensed 55 steel projects with total annual output of 60 million tons since end-2008.
Of the 55 projects, only 23 projects are under the plan, and 32 others were licensed by local authorities.
Once 24 steel projects become operational, they will supply more than three times as much steel as targeted under the plan, Cuong, chairman of the VSA warned.
The Minstry of Industry and Trade said steel sales hit 310,000 tons-320,000 tons in January, a threefold increase from the fourth quarter as demand for construction materials was rising.
Members of the VSA supplied 250,000 tons.
This year, steel sales will hit 9 million tons, up 2 per cent to 5 per cent on year. (VNS)
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