HOMEPAGE
Hot Properties
ADB: Vietnam’s 2009 GDP growth to be highest in South East Asia
MGM Grand Ho Tram: Vietnam’s First ‘Las Vegas Style’ Integrated Resort
Nha Trang’s Twin Towers project licenced
Foreign investors still have good opportunities in Vietnam
Sierra Wireless gets a foot in Vietnam’s ICT market
INDOCHINA INTERNATIONAL CONSULTING CO., LTD
HO Add: 62L/36 Nguyên Hồng, Ward 11, Bình Thạnh District, HCMC - Vietnam
Biz Office Add: #48 Road No 11, Quarter 6, Hiệp Binh Chánh Ward, Thủ Đức, HCMC - Vietnam
®Source: http://viipip.com should be clearly quoted for any use of information extracted from our website.
Publication permit No: 60/GP-TTĐT , April 05, 2010.
High prices opening door for imported steel
Date: 6/20/2009 10:20:45 AM
The more the prices of domestically-made products increase, the more favourable conditions this creates to help imports flood the market, experts have warned.
Imports flocking in
According to the General Department of Customs, in the first five months of the year, 139,479 tonnes of coil steel were imported into Vietnam. The figure is equal to 46.5 percent of the total steel imports of the whole year of 2008.
The noteworthy thing is that within the first 15 days of May of this year, 29,000 tonnes of coil steel were imported into Vietnam, equal to the construction steel imports for April 2009. Just within the first 10 days of June 2009, 40 tonnes of coil steel were imported into Vietnam from ASEAN countries.
Commenting about the imports flooding the domestic market, the Vietnam Steel Association (VSA) said that it is the increased prices of domestically-made steel products which has created favourable conditions for China-made and ASEAN-made steel, which have low prices, to penetrate the domestic market.
The Vietnam Steel Corporation (VSC) on June 18 said that imported coil steel is being sold for 200-300,000 less per tonne than VSC’s prices.
In fact, domestic producers once kept prices at reasonable levels. For example, in the first three months of the year, the construction coil steel was priced at 10.2-10.3 million per tonne, while bar steel at 10.3-10.8 million per tonne.
However, the producers, reasoning the ingot steel price increase of $20-30 per tonne, scrap steel $15-20 per tonne and the ingot steel tax increase by 3 percent, raised the sale prices beginning in April. The decision was backed by the higher demand for steel thanks to the implementation of a series of big construction projects. The prices have been raised to 10.6-10.8 million per tonne for coil steel and 10.9-11.3 million per tonne for bar steel.
Analysts have warned that by raising sale prices, domestic producers have been paving the way for import products which always have low prices, to flock into the market.
Domestic producers able to hold market?
Doubts have been raised about the capability of domestic steel producers in retaining the domestic market.
For many years, producers have always acted the same: They rush to raise sale prices right after there are some fluctuations with the ingot steel prices, even though they still have big stocks.
Analysts say that move would have been acceptable in previous years, when Vietnam had to import 60-70 percent of the ingot steel needed to laminate steel domestically. However, as the situation has become different, enterprises need to find a new way to behave. Vietnam now can produce nearly 60 percent of ingot steel needed, which means less reliance on ingot steel imports.
(Source:VietNamNet/LD)
Other news- Vietnam will become a destination for Chinese investors in the future (11/6/2023 1:03:19 PM)
- Thua Thien - Hue: Calling for investment (11/6/2023 1:00:42 PM)
- Hai Phong Planning to establish a series of industrial parks and economic zones (11/6/2023 12:58:13 PM)
- The Fastest Growing Economies In 2024 (11/6/2023 12:56:34 PM)
- Hai Phong reached the target of attracting FDI capital (10/17/2023 5:18:21 PM)
- Long An has 1,215 FDI projects with capital of 10,519 million USD (10/17/2023 8:40:41 AM)
- What do FDI enterprises recommend to the Vietnamese Government? (10/17/2023 8:38:33 AM)
- Vietnams 3 commitments to foreign businesses and investors (10/17/2023 8:35:45 AM)
- Up to now (2023), how much money have Asian tigers invested in Vietnam? (10/17/2023 8:31:59 AM)
- Another semiconductor manufacturer expands in Vietnam (10/17/2023 8:30:44 AM)
- Billions of dollars poured into Vietnamese semiconductor projects (10/17/2023 8:26:09 AM)
- Revealing the reason why Central region continuously invested by giants Foxconn, Goertek... (10/17/2023 8:24:49 AM)
- VIFTA: Vietnam-Israel Boulevard opened (8/28/2023 9:29:44 AM)
- Wistron announced to pour another 24.5 million USD into Vietnam to build a new factory. (8/28/2023 9:28:33 AM)
- Formulate policies to develop the logistics industry (8/28/2023 8:50:54 AM)
NEWS CATALOGUE
- Vietnam will become a destination for Chinese investors in the future
- What do FDI enterprises recommend to the Vietnamese Government?
- Up to now (2023), how much money have Asian tigers invested in Vietnam?
- Another semiconductor manufacturer expands in Vietnam
- Billions of dollars poured into Vietnamese semiconductor projects
