Steel producers for government support to domestic industry

Steel production capacity to date has doubled the plan, in excess about 20 million tonnes, according to statistics of Vietnam Steel Association (VSA). Under the steel production development plan, by 2025, total capacity of the plant was expected to be 20 million tonnes per year. However, as of now, all licensed projects are already capable of producing in total 40 million tonnes per year.

In Ba Ria-Vung Tau, there are 17 licensed steel projects with total capacity of 3.75 million tonnes of refined steel per year and over 10 million tonnes of scrolled steel per year. That means the province has seven projects outside the plan. Notably, not only Ba Ria-Vung Tau, a total 32 steel projects outside the plan have been granted investment permissions in the country, of that, five in Hai Phong, four in Thanh Hoa and Hai Duong and three in Ha Tinh, etc.

In order to restrain overproduction of steel which could cause waste and instability to the market, VSA has recently submitted an official document to the government regarding the uncontrolled licensing of steel projects. Meanwhile, some firms have also called for support from the government and authorities for protecting domestic steel manufacturers from the domination of imported steel products. According to VSA’s statistics, in the first four months of 2010, there was 1.75 million tonnes of steel in different types imported, of that many were in excess in the domestic.

Under the pressure from imported steel as well as the excessive capacity, many domestic steel firms have continually reduced steel price for five times so far. Currently, prices at factory of steel bars and rolled steel are around 12.54 to 13.14 million dong per tonne.

CafeF

Tags: Vietnam steel industry, Vietnam steel market, Vietnam steel prices

Posted by VBN on Jun 21 2010. Filed under Steel. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry