Vietnam to Remain Reliant on Steel Imports

Vietnam will continue relying on steel imports in 2009 as large-scale licensed steel-making projects are still under construction, the Vietnam Investment Review reported.

 

The Ministry of Industry and Trade forecasts recently estimated the country’s demand for steel in 2009 at around 10.5 million tons, a little more than half of which will be met by domestic supply.

 

Vietnam will import 40 per cent of billets, the raw material to make construction steel from wire rods and deformed bars, out of a forecast 4.7 million tons the nation needs this year.

 

The ministry said the country’s steel demand and supply gap led to a glut of foreign-invested, steel-making project licenses with a combined projected annual output of 30 million-40 million tons and these projects could come on line in the next few years.

 

Dau Van Hung, general director of state-run Vietnam Steel Corporation (Vnsteel) said “we see that steel investors are now reluctant to implement their projects amid the global financial crisis leading to limited capital sources and shrinking demand whilst other steel projects hit delays as a result of land site clearance.”

 

Meanwhile, the ministry said that large-scaled projects, licensed in 2008, could start rolling out products in the next three years. (VIR)