November 21, 2008

Vietnam government delays decision to ban steel exports

VNA reported that Vietnam government has not made a decision on banning exports of steel ingot. The report quoted Mr Le Duong Quang deputy minister of ministry of industry and trade of Vietnam as saying that the ministry wanted to find measures to limit exports of steel to ensure the demand for construction materials in the local market while ensuring steel businesses do not fall into difficult situations.

Mr Quang said that steel prices have dropped in the domestic market due to a reduction in demand. Prices are higher in other countries, so businesses have stored domestic steel for re export. He said that “It is not a big matter if the steel business exports a small volume to pay workers’ salaries and electricity costs. But if many businesses export a large volume, it will cause a shortage of steel in the country.”

According to the Vietnam Steel Association, in May there were a mere 10,000 tonnes of steel exported.

According to the Vietnam’s Customs Department more than 1,244,100 tonnes of steel were imported to Ho Chi Minh City in the first half of this year, of which 236,789 tonnes of steel had been re exported to other countries.