Steel industry to see tougher competition with newcomers

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Five new steel mills with a combined capacity of 1.5 million tons per year will start operations this year, making supply further exceed demand and leading to a fiercer competition in the local steel market. The steel mills of Thai Trung Steel Co. in Thai Nguyen, An Hung Tuong Steel Co. in Binh Duong, Middle Region Steel Co., Pacific Steel Co. and Dana-Italy Steel Co. in Danang are scheduled to begin production this year. With the additional capacity of these new plants, the total steel capacity of the country will rise to 11 million tons a year. The annual steel consumption in Vietnam is now some five million tons, less than half of the production capacity of domestic steel mills, said Nguyen Tien Nghi, vice chairman of the Vietnam Steel Association (VSA). While Vietnam's steel exports are facing stronger trade defense in foreign countries, the fact that more steel plants will be put into operation this year will make the competition among local steelmakers more … [Read more...]

Viet Nam increases anti-dumping duties for imported steel products

Viet Nam increases anti-dumping duties for imported cold rolled stainless steel products to protect the domestic market.— Photo vca.gov.vn

HA NOI (Biz Hub) — Viet Nam decided to increase anti-dumping duties for cold rolled stainless steel products from China, Indonesia, Malaysia and Taiwan, the Vietnam Competition Authority said. The increase, based on the first period of review conducted by the Ministry of Industry and Trade, will be applied from May 14, 2016 to October 6, 2019. Taiwanese steel producer Yuan Long Stainless Steel Corporation will suffer the highest duty rate of 37.29 per cent. The investigation was carried out in October 2015 after domestic plaintiffs, including Posco VST Company Ltd and Hoa Binh Inox Joint Stock Company, proposed they would review the anti-dumping tax on cold rolled or bared stainless steel products imported to Viet Nam. Basing on the investigation results, duties levied on China's Shanxi Taigang Stainless Steel Company Ltd. will increase from 6.58 per cent to 17.47 per cent, while other Chinese steel firms will fall 25.35 per cent, five times higher than the previous … [Read more...]

Anti-dumping duties on steel to rise

Viet Nam increases anti-dumping duties for imported cold rolled stainless steel products to protect the domestic market.— Photo vca.gov.vn

HA NOI (Biz Hub) — Viet Nam decided to increase anti-dumping duties for cold rolled stainless steel products from China, Indonesia, Malaysia and Taiwan, the Vietnam Competition Authority said. The increase, based on the first period of review conducted by the Ministry of Industry and Trade, will be applied from May 14, 2016 to October 6, 2019. Taiwanese steel producer Yuan Long Stainless Steel Corporation will suffer the highest duty rate of 37.29 per cent. The investigation was carried out in October 2015 after domestic plaintiffs, including Posco VST Company Ltd and Hoa Binh Inox Joint Stock Company, proposed the ministry to review the anti-dumping tax on cold rolled or bared stainless steel products imported to Viet Nam. Basing on the investigation results, duties levied on China's Shanxi Taigang Stainless Steel Company Ltd. will increase from 6.58 per cent to 17.47 per cent, while other Chinese steel firms will be imposed a tax rate of 25.35 per cent, five times higher … [Read more...]

Dung Quat steel super- project: investor resumes interest

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VietNamNet Bridge - E-United has unexpectedly expressed its willingness to come back to Vietnam to develop the Guang Lian steel project which it once gave up because of financial problems. Dau Tu reported that the Dung Quat Economic Zone Board of Management and Guang Lian last week had a working session on the issue. The newspaper quoted its source as reporting that it is too early to say about the comeback, because the inspection over the project is still on the go. The Quang Ngai provincial authorities, after E-United announced its leaving, planned to take back the investment license. In December 2015, the local authorities set up an inspection team to examine the use of the allocated land and the project implementation. Licensed in 2006, Guang Lian has experienced a lot of changes. At first, the project was registered by Taiwanese Tycoons which planned to set up a 5 million ton steel mill with the investment capital of $1 billion. E-United has unexpectedly expressed its … [Read more...]

Taiwanese firm apologizes for official’s callous remarks on mass fish deaths

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Formosa representatives apologize for a company official's shocking remarks related to the recent environmental disaster in Vietnam at the press conference on April 26, 2016. Photo: Nguyen Dung A Taiwanese steel company Tuesday afternoon apologized for what has been panned as a callous statement by one of its top executives about an ongoing environmental disaster in central Vietnam that has resulted in mass fish deaths. Hung Nghiep Formosa Ha Tinh Steel Company (FHS), went into damage control mode, organizing a press conference to apologize, as public outrage mounted in response to a statement by Chu Xuan Pham, chief of its representative office in Hanoi. Pham had told reporters who asked if Formosa had installed an undersea pipe to discharge wastewater directly into the sea in Ha Tinh Province: "I admit that the discharge of wastewater will affect the environment to some extent, and it is obvious that the sea will have less fish. "But before we built the plant, we got permission … [Read more...]

Steel supply abundant, prices down

Steel price has reduced thanks to abundant supply source (Photo: SGGP)

According to the Vietnam Steel Association (VSA), steel prices have reduced by VND100,000-200,000 a ton after a briefly sudden increase in mid-March. It has swung around VND12 million (US$538) a ton in Ho Chi Minh City for the last few days. Preliminary statistics by VSA show that steel consumption in March was estimated to reach 763,000 tons, the highest level ever in the steel industry’s history. It moved up 66 percent over February and 15 percent over the same period last year. The record high increase was because the annual construction season has entered its peak time and steel stores have stepped up stockpiling after the Ministry of Industry and Trade decided to impose temporary safeguard duties. Despite of the strongly hiked consumption volume, steel inventory still hit 325,000 tons at the end of March. Besides, the market will receive one million tons of steel supply from a slew of new projects going to come into operation this year. This indicates that businesses … [Read more...]

Ministry to host public consultation on tariffs for imported steel

Steel is prepared to be transported at Viet Duc Steel Co in Vinh Phuc province

The Vietnam Competition Authority (VCA) will host a public consultation meeting on May 5 to collect opinions from agencies and businesses on the duties imposed on imported steel. At the meeting, participants can present opinions on protective measures for steel products imported to Vietnam, according to the VCA. In early March, the Ministry of Industry and Trade announced safeguard duties on imported steel products as a temporary protective measure against inexpensive imports that were allegedly threatening the domestic industry. According to Decision No. 862/QĐ-BCT, the ministry will issue temporary safeguard duties of 23.3 percent on steel billets and 14.2 percent on long steel products for a maximum of 200 days. Explaining the extra tariff, the Ministry of Industry and Trade said the measure aimed at protecting the domestic steel industry from a flood of cheap steel, mainly from China. The move also targeted to help local steel makers have more time to spend on business … [Read more...]

VN Steel industry worries cheap imported products

Vietnam's steel sheet industry faces cutthroat competition from imported steel products. (Photo: SGGP)

Steel sheet industry has recently been threatened by cheap imported products, especially from China, which continue to flood in Vietnam. Earlier, imported steel ingots and steel rods overshadowed domestically-made ones that forced local authorities to take protective measures to save domestic steel industry. Figures by the Vietnam Steel Association say that in 2015 the country imported up to 19.83 million tons of steel products and semi-finished steel products, of which 9.6 million tons of steel products were imported from China with Chinese-made plated steel sheets alone, accounting for 90 percent. Currently, Chinese steel sheets have accounted for more than 40 percent of market share. Besides the increasing volume of imported products which gradually dominate local market, domestic steel producers also concern that with cheap and low-quality imported steel sheets flooding the market, domestic steel businesses will face difficulties. In fact, the country’s total steel sheet … [Read more...]

Speculation sends steel prices soaring

Van Nam Such high a price may be short-lived, said Nguyen Van Sua, vice chairman of the Vietnam Steel Association (VSA). He told the Daily that local steel demand this year could not increase sharply against 2015 as there is ample supply, especially of construction steel. The country’s annual steel ingot production capacity is around 11 million tons and construction steel output is over 11 million tons a year though local steel mills have been running at 50-60% capacity in recent years. The Ministry of Industry on March 7 issued a decision imposing temporary safeguard duties of 23.3% and 14.2% on steel ingots and long steel products in 200 days starting March 22. Sua said the temporary safeguard duties are not the reason behind the recent pickup in steel prices. He pointed the accusing finger at speculation, saying speculators cannot hold on to steel for a long period of time. VSA advised consumers, especially investors of construction projects, to stay cautious and … [Read more...]

VSA: Steel prices to go up

An employee is inside a steel retail outlet in HCMC. VSA predicted prices of steel products will continue increasing slightly in the coming time - PHOTO: THANH HOA

Van Nam Ho Nghia Dung, chairman of the Vietnam Steel Association (VSA), made this projection in a telephone interview with the Daily on March 14 following the steel price spike. Dung said steel prices have risen significantly in recent days, driven by improving demand and prices of steel ingots and scrap steel on global markets. Last month saw domestic steel consumption surging 62% compared to the same period last year. Dung noted there have been signs of steel speculation after the Ministry of Industry issued a decision imposing the temporary safeguard duties of 23.3% and 14.2% on steel ingots and long steel products from March 22 to October 7 this year. Pomina Steel JSC adjusted up its price by VND250,000 (around US$11.2) a ton five days ago. VSA’s statistics showed that member companies of the association turned out 1.16 million tons of steel last month, soaring nearly 70% over the same period last year, and sold nearly 920,000 tons last month, up more than 70% … [Read more...]

Steel price in Vietnam soars as safeguard measure taken; hoarding suspected

Trucks queue to load steel in Ba Ria-Vung Tau on March 12, 2016. Photo:

There have been signs of steel hoarding in anticipation of surging prices in Vietnam, on the eve of a temporary safeguard measure recently imposed on two types of steel imports into the Southeast Asian country. Vietnam has decided to take safeguard action on steel billets and long steel products imported into the country between March 22 and October 7, according to a decision signed by the Ministry of Industry and Trade on March 7. A safeguard action is intended to protect a specific domestic industry from an increase in imports of any product which is causing, or threatening to cause, serious injury to the industry by temporarily restricting imports of that product, according to the World Trade Organization. On December 25, 2015, the trade industry began a probe into imports of steel billets and long steel products following complaints by Hoa Phat Steel JSC, VNSteel Corp., Thai Nguyen Iron and Steel JSC and Vietnam Italy Steel. The four domestic steelmakers, which … [Read more...]

Steel Businesses Split on Steel Billet Imports

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The Ministry of Industry and Trade of Vietnam is investigating a case of dumping Chinese steel billet in the domestic market. This issue has been creating disagreements among steel enterprises. One side is in favour of opening up the domestic market for foreign steel billet and opposes trade barriers, while the other campaigns against foreign steel billet and supports safeguard measures.Lawsuits within the family The Ministry of Industry and Trade (MOIT) is investigating and applying a series of safeguard measures on steel billet and long steel products imported into Vietnam. However, this action faces opposition from a wide range of steel companies such as Pomina JSC, Natsteelvina Co. Ltd, Vinausteel Joint Venture, B.C.H JSC, Vietnam - Germany Steel JSC, and others. These businesses have filed a request urging for the investigation to be reconsidered. According to these firms, the investigation and application of safeguard measures were likely to negatively impact the development of … [Read more...]

Gloomy future for VN steel industry

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VietNamNet Bridge - Steel mills now have to struggle to compete with imports from China. If the Ministry of Industry and Trade (MOIT) does not take temporary safeguard measures, a series of enterprises will go bankrupt. A report of the ministry said that in January 2016, Vietnam churned out 364,500 tons of raw steel, a decrease of 7.1 percent compared with the same period last year. Meanwhile, the imported volume increased by 33.9 percent. The imports from China remain a headache for domestic steel enterprises. Chinese enterprises have increased exports to Vietnam to ease domestic oversupply, accepting to sell products at below production costs. Meanwhile, under the ASEAN-China Free Trade Agreement (FTA), the import tariff on alloy steel will be cut to zero percent, which will pave the way for more steel to enter Vietnam. Under the ASEAN-China Free Trade Agreement (FTA), the import tariff on alloy steel will be cut to zero percent, which will pave the way for more steel to enter … [Read more...]

Domestic steel makers fall on hard times

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VietNamNet Bridge – The application of trade protection measures has become an urgent necessity to safeguard Vietnam’s juvenile steel production industry from cheap imports from China. Figures released by the Vietnam Steel Association (VSA) show that Vietnam imported 1.9 million tonnes of billets in 2015, more than triple 2014’s level, and equal to 30% of locally-produced volumes. The imported volume in January 2016 alone (326,000 tonnes) doubled last year’s monthly average level/ If this trend continues, the volume of imported billets this year could be double last year’s and in 2017 the domestic billet market would be totally dominated by imported items, mainly from China, with prices lower than the domestic production cost. According to VSA Deputy Chairman Nguyen Van Sua, as Vietnam only consumes about seven million tonnes of construction steel and 7.5 million tonnes of billets annually, the domestic market is minuscule in scope compared to the … [Read more...]

Stronger connectivity to capitalize on TPP opportunities

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Stronger connectivity in the industrial sector is vital for optimizing opportunities created by the Trans-Pacific Partnership (TPP), said participants at a forum in Hanoi on March 1. Vice Chairman of the Vietnam Steel Association Nguyen Van Sua pointed out that a majority of industrial manufacturing companies are small-and medium-sized and lack financial strength, high technology, and management experience. As Vietnam will soon fully integrate into the TPP region, which is a vast market with stringent rules on origin and quality, businesses themselves must improve their product quality and establish connections to form a strong community able to compete with foreign rivals, he said. He also asked authorized agencies to assist domestic enterprises by giving support relating to trade remedies and quality control regulations, and providing detailed information about TPP member nations. The Ministry of Industry and Trade’s Heavy Industry Department also urged for close … [Read more...]

Large number of steel imported in 2015

A large number of steel totally worth US 9 billion was imported in 2015, announced the Vietnam Steel Association (VSA) yesterday. Of the amount, the rate of made-in- China steel is 52 percent. In 2015, Vietnam bought 19.83 million tons of finished and semi-finished steel products, equivalent to US$9 billion, an increase of 27.24 percent compared to 2014. Though the country’s export steel value reached US$2.46 billion, the value decreased by 14 percent compared to 2014 and the country’s major steel markets were Asian countries with over 75 percent. VSA said that nearly 551,000 tons of steels were consumed in the country in January 2016, a surge of 36.6 percent compared to same period last year. Local steel manufacturers said that prices of steel materials and billets are on upward trend after plummeting for a long time. Compared to December 2015, prices of steel material hiked by US$10-15 per tons and steel billet went up by SU$10 a tons. … [Read more...]

Breakfast @ Tuoi Tre News – February 20

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Here are the leading news stories about Vietnam you should not miss today, February 20, 2016. Society -- A raging fire broke engulfed four warehouses in Rach Gia, the capital of the southern province of Kien Giang, from 4:00 – 9:00 pm on Friday, destroying assets worth billions of dong. (VND1 billion = US$44,643) -- Hundreds of dead ducks were found floating on the Da Rang River in the south-central province of Phu Yen on Friday, with authorities still investigating to find where they came from. -- A 60-year-old and his 45-year-old friend both died of unknown reason when they were drinking coucal bird-soaked alcohol in the southern province of Long An on Friday. -- Ho Chi Minh City will earmark some VND13.5 trillion (US$602.68 million), VND8.7 trillion of which is borrowed from Japanese loan, to launch the third stage of a program to improve the city’s water environment, the municipal administration said Friday. -- Prosecutors in the southern province of Dong … [Read more...]

Trade remedies application should harmonise businesses’ interests

Although trade remedies are necessary amid the strong liberisation of trade, the problem is how to ensure domestic steel producers’ interests while applying these tools, many insiders have said. Data from the Vietnam Steel Association (VSA) shows that Vietnam turned out nearly 15 million tonnes of steel products in 2015, up 21.5% year on year – and sold almost 17.9 million tonnes (including imported products), up 26% annually. However, the steel industry faced 12 trade remedy and anti-dumping lawsuits in its export markets last year. It also witnessed an influx of imported steel, with over 13 million tonnes of steel products worth 9 billion USD, compared with 2.8 million tonnes of exported steel valued at 2 billion USD. With export destinations to be expanded in 2016, Vietnam ’s steel industry will have more opportunities to ship its products overseas and reach its target growth rate of 15 to 20%. Nguyen Phuong Nam, Deputy Director General of the Ministry of … [Read more...]

Imported steel poses a threat

Workers load imported steel at Hai Phong Port in the northern city of Hai Phong. About 13.7 million tonnes of steel products were imported in 2015, up 23 per cent year-on-year. — VNA/VNS Photo Hoang Hung

HA NOI (VNS) — Viet Nam risks being flooded by imported steel products, warned Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association (VSA), at a meeting in Ha Noi on Wednesday to review the association's performance in 2015. Sua cited the increasing volume of rolled steel, steel bars and galvanised steel products imported from foreign countries. Statistics released by the VSA showed that about 13.7 million tonnes of steel products were imported in 2015, up 23 per cent year-on-year, and more than 1.8 million tonnes of steel billets, up 198 per cent from the previous year's figure. Over 1.6 million tonnes of rolled steel and steel wire were imported last year while the country was able to produce only 1.1 million tonnes of rolled steel. According to the VSA Vice Chairman, steel from China amounted to more than 8.4 million tonnes, worth over US$3.7 billion, and accounting for 60 per cent of Viet Nam's imported steel. The figures represent year-on-year increases of 57 … [Read more...]

Vietnam at risk of being flooded by imported steel

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Vietnam risks being flooded by imported steel products, warned Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association (VSA) at a meeting in Hanoi on January 13 to review the association’s performance in 2015. Sua cited the increasing volume of rolled steel, steel bars and galvanised steel products imported from foreign countries to clarify his views. Statistics released by the VSA showed that about 13.7 million tonnes of steel products were imported in 2015, up 22.56% year-on-year, and more than 1.78 million tonnes of steel billets, up 198% from the previous year’s figure. Over 1.62 million tonnes of rolled steel and steel wire were imported last year while the country was able to produce only 1.13 million tonnes of rolled steel. According to the VSA Vice Chairman, steel from China amounted to more than 8.4 million tonnes, worth over US$3.7 billion, accounting for 60% of Vietnam’s imported steel. The figures represent year-on-year increases of 57% … [Read more...]