The Vietnam Steel Association (VSA) has called for strict supervision tocontrol the volume of steel imported from China and SoutheastAsian countries.
The VSA has sent a proposal to the General Department of Customs,Ministry of Finance and Ministry of Industry and Trade to find an urgentsolution after the volume of domestically-produced rolling steelstrongly reduced in the first two months due to cheaper importedproducts.
In the first two months, about 700,000 tonnes ofsix and eight-inch diameter rolling steel were imported from Chinaand ASEAN, putting a strong strain on domestic steel production, the VSAsaid.
"Currently, the volume of six and eight-inchdiameter rolling steel has dramatically dropped due to increasedimports," affirmed the VSA's deputy chairman Nguyen Tien Nghi.
Nghi added that market share on these domestically-produced steelproducts decreased to 22 percent in northern provinces and 14percent in the south.
"Previously domestic producers held a 30 percent and 35 percent market share," Nghi said.
To strictly control imports, the VSA demanded that customs andministries examine the import of steel, to ensure that the foreign steelexporters don't benefit from low import tax duties.
"Some of the steel imported from China and ASEAN are avoiding tax through exploiting loopholes," Nghi added.
In terms of prices, the VSA predicted that steel prices will surely increase due to the high prices of petrol and oil.
Some 40 kilos of mazut is necessary to produce a tonne of steel. Withnew petrol and oil prices, each tonne of steel will rise by 80,000 VND(4 USD), said Nghi, excluding transportation costs.
Nghi, however, said that new prices depended on price of imported pig iron on the world market.
Purchase power was also an important factor directly affecting the price of steel, Nghi said. /.
The VSA has sent a proposal to the General Department of Customs,Ministry of Finance and Ministry of Industry and Trade to find an urgentsolution after the volume of domestically-produced rolling steelstrongly reduced in the first two months due to cheaper importedproducts.
In the first two months, about 700,000 tonnes ofsix and eight-inch diameter rolling steel were imported from Chinaand ASEAN, putting a strong strain on domestic steel production, the VSAsaid.
"Currently, the volume of six and eight-inchdiameter rolling steel has dramatically dropped due to increasedimports," affirmed the VSA's deputy chairman Nguyen Tien Nghi.
Nghi added that market share on these domestically-produced steelproducts decreased to 22 percent in northern provinces and 14percent in the south.
"Previously domestic producers held a 30 percent and 35 percent market share," Nghi said.
To strictly control imports, the VSA demanded that customs andministries examine the import of steel, to ensure that the foreign steelexporters don't benefit from low import tax duties.
"Some of the steel imported from China and ASEAN are avoiding tax through exploiting loopholes," Nghi added.
In terms of prices, the VSA predicted that steel prices will surely increase due to the high prices of petrol and oil.
Some 40 kilos of mazut is necessary to produce a tonne of steel. Withnew petrol and oil prices, each tonne of steel will rise by 80,000 VND(4 USD), said Nghi, excluding transportation costs.
Nghi, however, said that new prices depended on price of imported pig iron on the world market.
Purchase power was also an important factor directly affecting the price of steel, Nghi said. /.
