Vietnam tighten controls on export of mineral products

Sunday, 03 Aug 2008

21st Century Business Herald reported that Vietnam is tightening the control on exports of minerals.

It cited Mr Gu Weizhang a senior official from Department of Commerce of Guangxi as saying that "We should insist on barter trade and exchange coke for iron ore from Vietnam to achieve a win win result."

Mr Huang Huizhuan GM of Sinotrans Guangxi Pingxiang Company said "51% limonite from Vietnam is traded at CNY 400 per tonne at the border and 60% limonite is transacted at CNY 750 per tonne. The quality is higher than domestic ones and the price is cheaper."

He said that "This has greatly impacted our imports of iron ore from Vietnam. The company imported more than 30,000 tons of iron ore in the first half of this year, compared with over 80,000 tons in last year. We now vacillate about future efforts in this business in view of diving imports."

Mr Li Xiangrong director general of local bureau of commerce said that "All the coming coal has been exported and we are waiting for the new quota. He said that "This barter trade does not mean spot exchange. It also covers cash settlement."

Mr Li Chaolin coal expert said "Raw materials of steelmaking include iron ore, coke, ferroalloy and so on. Steel industry contributes to 80% of the country's coke consumption. Vietnam's move will help the development of its steel industry."

China is the world's biggest coal producer and exporter, which provides half of global coke supply. But the country has tightened control on coke exports in recent years. Coke exports amounted to 15.3 million tonnes in 2007 up by 5.74% YoY.