Mining News Pro - According to the data from Vietnam’s Ministry of Industry and Trade (MIIT), the country’s steel import volume is estimated to stand at 7 MnT in first six months of 2018 (from Jan to Jun’18), down by 11.6% against corresponding period of previous year. However, in terms of amount of steel imported, the same is expected to reach USD 5 billion, up by 8.3% y-o-y basis.
The import volume of other general metals totalled to 910,000 tonnes in the first half of this year, declined by 2.2% year on year while the amount is recorded at over USD 3 billion roughly, up by 16% y-o-y.
In 2017, Vietnam imported about 15 MnT of iron and steel and China ranked as the biggest source of imports during the year with quantity of 7 MnT (amounting to USD 4 billion) coming from the country to Vietnam.
In terms of sales, the country sold about 6.69 MnT of steel during Jan to May’18, registering an increase of 35% y-o-y basis. Whereas in 2017, it was reported that the Vietnamese mills produced about 21 MnT of steel, up by 24.3% year on year.
VSA’s appeal to the government to stop issuance of new investment licenses
According to the reports, Vietnam Steel Association (VSA) has asked the country’s government not to grant new investment licenses to foreign firms, as steel supply in the country is already higher than demand.
Amid trade war between U.S. and China, and production restriction by Chinese steel mills as a part of country’s supply side reforms, many Chinese companies see Vietnam as a haven for steel investment.
Chinese company Yongjin Metal is pushing for another government approval from Vietnam to open a cold-rolled steel company in Dong Nai Province after a similar application was rejected last year as informed by the market sources.
VSA has sent a letter to the office of the government and relevant ministries urging the government not to grant investment license to the firm because domestic product surplus already exist.
From 2012 to 2017, Vietnam’s steel industry has seen a stable average growth of 15%, but supply is already higher than the market demand.
VSA President Ho Nghia Dung recently quoted that hot-rolled steel is the only type of steel that Vietnam has to import since there`s little production in the country, while domestic demand for other steel products have already been met. In fact, local businesses have had to boost exports so as to reduce competitive pressure in the domestic market.