The Vietnamese steel industry could face difficulties in reaching its growth rate target of 2-3 percent this year.
Slower growth in the steel industry might be due to low demand,abundant supply and increasing material prices, according to the VietnamSteel Association (VSA).
Statistics released by theMinistry of Industry and Trade indicate that in the first 11 months ofthe year, both steel output and sale decreased from the same period lastyear.
Specifically, iron and steel output in theperiod saw a 10.8 per cent decrease to 2.48 million tonnes, thoughlaminate steel was 2.61 million tonnes, increasing 25 percent.
The association also said steel prices saw a slight change due tosupply over demand, noting that steel imports were still high during theperiod, despite weak demand.
Figures from theGeneral Statistics Office revealed that Vietnam shipped 2 million tonnesof steel, worth 1.61 billion USD, during the January-November period,posting a 17 percent rise against the corresponding period last year.
However, steel import in the period reached 8.9million tonnes, with the total amount of 6.25 billion USD, representing a27 percent year-on year surge. The sector also saw a 2.64 billion USDtrade deficit during this period.
VSA chairman PhamChi said the industry's trade deficit during the period was caused byproducers importing hot laminate steel to be used as cold laminatesteel, flat steel and colour-plate corrugated iron production forexports.
Cuong added that exports of the items during the period rose 30-40 percent in comparison with the same period last year.
He added that one of the sector's biggest difficulties was withlimited capital, which much depended on loans. In addition, it has alsorelied on imported materials and backward technologies, resulting inhigh production costs and low competitiveness.
Theassociation said steel producers should gradually eliminate old-fashiontechnologies to save production costs, while striving to expand exportmarkets.
The businesses were urged to organiseexport networks targetted to large and long-term potential markets. Theyshould also have a deeper understanding about laws of export countries,to avoid possible lawsuits.
The Vietnam CompetitionAgency announced on December 3 that steel imports from mainland China,Indonesia, Malaysia, and China’s Taiwan will be subject to anti-dumpingtaxes, ranging from 6.45 per cent to 30.73 percent for first timeoffenses.
The ruling was the result of a five-monthinspection by the agency on steel imports from these countries,following complaints from Posco VST Company and Hoa Binh Inox JointStock Company, which accounted for 80 percent of the Vietnamese steelmarket.
The agency said manufacturers from thesecountries and territories have sold their steel to Vietnam at pricesindicating they were dumping steel.
VCA will levy anti-dumping duties within 120 days on steel imports from those exporters.
A 6.45 percent anti-dumping duty will also be applied for China'sFujian Southeast Stainless Steel Co Ltd, while the respective figuresfor Lianzhong Stainless Steel Corporation and Fujian Southeast StainlessSteel Co Ltd are 6.99 percent and 6.68 percent, according to VCA.
Additionally, PT Jindal Stainless Indonesia and other Indonesiansteelmakers will bear a 12.03 percent duty when exporting steel toVietnam.
Bahru Stainless Sdn Bhd and other Malaysian manufactures will be subject to a 14.38 percent tax.
The highest duty, 30.73 percent, will be imposed on Taiwan's Yuan LongStainless Steel Corp, while Yieh United Steel Corporation and otherTaiwanese steelmakers will be subject to a 13.23 percent tax.
The anti-dumping tax levels were lower than proposals from the twoplaintiffs, which asked for duties ranging from 20 percent to 39.9percent to be applied for five years.-VNA
Slower growth in the steel industry might be due to low demand,abundant supply and increasing material prices, according to the VietnamSteel Association (VSA).
Statistics released by theMinistry of Industry and Trade indicate that in the first 11 months ofthe year, both steel output and sale decreased from the same period lastyear.
Specifically, iron and steel output in theperiod saw a 10.8 per cent decrease to 2.48 million tonnes, thoughlaminate steel was 2.61 million tonnes, increasing 25 percent.
The association also said steel prices saw a slight change due tosupply over demand, noting that steel imports were still high during theperiod, despite weak demand.
Figures from theGeneral Statistics Office revealed that Vietnam shipped 2 million tonnesof steel, worth 1.61 billion USD, during the January-November period,posting a 17 percent rise against the corresponding period last year.
However, steel import in the period reached 8.9million tonnes, with the total amount of 6.25 billion USD, representing a27 percent year-on year surge. The sector also saw a 2.64 billion USDtrade deficit during this period.
VSA chairman PhamChi said the industry's trade deficit during the period was caused byproducers importing hot laminate steel to be used as cold laminatesteel, flat steel and colour-plate corrugated iron production forexports.
Cuong added that exports of the items during the period rose 30-40 percent in comparison with the same period last year.
He added that one of the sector's biggest difficulties was withlimited capital, which much depended on loans. In addition, it has alsorelied on imported materials and backward technologies, resulting inhigh production costs and low competitiveness.
Theassociation said steel producers should gradually eliminate old-fashiontechnologies to save production costs, while striving to expand exportmarkets.
The businesses were urged to organiseexport networks targetted to large and long-term potential markets. Theyshould also have a deeper understanding about laws of export countries,to avoid possible lawsuits.
The Vietnam CompetitionAgency announced on December 3 that steel imports from mainland China,Indonesia, Malaysia, and China’s Taiwan will be subject to anti-dumpingtaxes, ranging from 6.45 per cent to 30.73 percent for first timeoffenses.
The ruling was the result of a five-monthinspection by the agency on steel imports from these countries,following complaints from Posco VST Company and Hoa Binh Inox JointStock Company, which accounted for 80 percent of the Vietnamese steelmarket.
The agency said manufacturers from thesecountries and territories have sold their steel to Vietnam at pricesindicating they were dumping steel.
VCA will levy anti-dumping duties within 120 days on steel imports from those exporters.
A 6.45 percent anti-dumping duty will also be applied for China'sFujian Southeast Stainless Steel Co Ltd, while the respective figuresfor Lianzhong Stainless Steel Corporation and Fujian Southeast StainlessSteel Co Ltd are 6.99 percent and 6.68 percent, according to VCA.
Additionally, PT Jindal Stainless Indonesia and other Indonesiansteelmakers will bear a 12.03 percent duty when exporting steel toVietnam.
Bahru Stainless Sdn Bhd and other Malaysian manufactures will be subject to a 14.38 percent tax.
The highest duty, 30.73 percent, will be imposed on Taiwan's Yuan LongStainless Steel Corp, while Yieh United Steel Corporation and otherTaiwanese steelmakers will be subject to a 13.23 percent tax.
The anti-dumping tax levels were lower than proposals from the twoplaintiffs, which asked for duties ranging from 20 percent to 39.9percent to be applied for five years.-VNA
