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In the midst of hurricane planning steel, Chinese steel prices rushed into Vietnam

13:39 - 22/11/2017
According to the General Department of Customs, up to 15/11, Vietnam imported 16.2 million tons of iron and steel, valued at 7 billion USD, unit price 437 USD / ton. In general, steel imports to Vietnam increased nearly 1.6 times over the same period last year (about 10 million tons).

Remarkably, Vietnam's main steel import market is still China, according to figures by the end of 10/2016, Vietnam imported 9 million tons of iron and steel from China, value of turnover 3, $ 6 billion, unit price $ 400 / ton.

Compared with the total import of 15.4 million tonnes, worth $ 6.5 billion, at $ 422 / tonne in October 2016, steel imports from China accounted for nearly 60% of volume and value of imports. .

In fact, steel imports from China are always much lower than steel prices of domestic manufacturers and steel prices of Vietnam exports.

As of the end of November, the price of hot rolled coil (HCR) in South East Asia and Vietnam was only US $ 483 - 488 per tonne, according to a report by the Vietnam Steel Association (VSA). . Steel bar price is also $ 425 - $ 429 per ton. Thus, this price is always higher than the average steel price imported from China to Vietnam.

Why China Iron and Steel in Vietnam is cheaper than domestic steel and the average price of iron and steel imported from markets such as Russia, Indonesia or South Korea, talk with Dan Tri, Mr. Ho Nghia Dung "Currently, China's steel production capacity is billions of tons per year, about 30 percent is used domestically and most of it is exported abroad," said VSA President. The steel price in China is very competitive and, if compared to the price of steel, China The country has no opponents. "

According to economist Le Dang Doanh, the phenomenon of cheap Chinese steel prices are overwhelming, competition in all aspects for Vietnam is due to domestic steel prices are expensive due to technology backward, fragmented and price low increase. Remarkably, China's steel price is also more profitable when Vietnam is forced to implement the tariff elimination mechanism in the ASEAN Free Trade Agreement with ASEAN and China. Here, steel and steel billets are in more than 3,600 items that Vietnam and many ASEAN countries have to remove taxes from 2015 to 2018.
Accordingly, in the Circular No. 166/2014 of the Ministry of Finance, the tax on many steel products from China to Vietnam from 2015 was cut from 55% and 25% (before 2010) to the lowest level 0%. Non-alloy bar steels have the highest tax rate of 20%, billets and ores have a 5% level, and China's hot rolled coil is subject only to 0% tax when entering Vietnam.

Recent information, the Ministry of Industry and Trade in the second draft, the steel industry planning to 2025 and orientation 2035 removed 12 steel projects out of planning. However, at the same time as scrapping 12 steel projects, the ministry decided to double the production of the entire steel industry, triple the original figure.

It is said that the domestic steel industry is in danger of competition in the domestic market, not many opportunities for export. In addition, Vietnam has been opening its domestic market, eliminating tariffs with large steel producing countries such as China, Russia, Korea, Australia and many East European countries.

Regarding the change in the total output of the whole industry, the second draft of the Ministry of Industry and Trade's second draft of the plan of steel industry increased the production of molasses and sponge iron from 8 million tons to 21 million tons 2020, up to 46 million tons in 2025 and from 30 million tons to 55 million tons in 2035. At the same time, billet production from 18 million tons to 32 million tons in 2020, from 27 million tons to 57.3 million tons in 20250 and from 52 million tons to 66.3 million tons in 2035. The increase of the new draft from the previous version is from 27% to 55% of total output.

Noteworthy is the Ministry of Industry and Trade has adjusted the construction of Ca Na steel complex from 5 stages to 3 stages, shorten the time to put this project into production but still keep the output of 16 million tons of sponge iron ore blast furnace technology and 16 million tons of billet.
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