3:26:37 PM | 7/8/2005
The Vietnam Steel Association yesterday sent a document to the Government Office and several ministries to ask for a reduction in the import tariff on steel ingots from the current 5 per cent to 0 per cent from May 1, 2005.
According to the association, the import price of steel ingots has increased by US$20 to between US$405 and US$410 per tons since late 2004. This has forced local steel factories to raise their laminated steel price to at least VND8 million (US$509.55) per ton to break even.
In addition, the price of steel ingots imported from China has risen to between US$425 and US$440 per ton since April 1 due to China’s measure to limit its steel ingot exports. Chinese steel ingots now make up 40 per cent of Vietnam’s steel ingot imports.
According to the association, most of the steel companies in Vietnam incurred losses in the first quarter of this year as they were ordered by the Government not to raise their steel prices to keep the local market stable. The rise in the transport costs, fuel prices and material prices makes the situation even worse.
Currently, local steel ingot producers can meet only 20 per cent of the country’s demand.
Vietnam spent US$180 million to import 467,000 tons of steel ingots in the first quarter of this year, down 0.7 per cent and 7.6 per cent against the same period last year, respectively.
Vietnamese
