Vietnam will import around 1.3-1.5 million tons of scrap steel next year, compared with 700,000-800,000 tons this year, as many steel production mills are becoming operational in the country, said the Vietnam Steel Association (VSA).
The association said at least three plants, with combined annual capacity of 1.4 million tons of steel billets and 570,000 tons of finished steel, would be put into operation in 2007, while the domestic steel scrap supply is just 700,000-800,000 tons a year, creating huge demand for steel scrap imports.
It requires 1.1-1.15 tons of steel scrap to produce one ton of steel ingot, VSA said, adding that in 2006 alone, nine out of VSA’s 60 members engaging in making finished steel from scrap steel or iron ores.
To ensure the domestic ingot supply source, the association and the Vietnam Steel Corp. asked its member units to boost production, operating new projects in order to raise the ingot production capacity in 2007 and the following years.
This year, Vietnam has opened several steel mills including Phu My Steel Mill under Southern Steel Corp with annual capacity of 500,000 tons of steel ingots and 400,000 tons of laminated steel, Dinh Vu Steel Joint Stock Co with annual capacity of 230,000 tons of steel ingots, Van Loi Iron Cast Co 250,000 tons and Bluescope Steel Vietnam 125,000 tons.
The Trade Ministry forecast that Vietnam would need 4 million tons of steel in 2007, up 11 per cent on-year, and the country’s steel sector is estimated to manufacture 2.3 million tons of steel, meeting 50 per cent of the country’s total demand.
VNA
Vietnamese
