Vietnamese steelmakers demanded that the government increase the import tax on finished steel from the current 8% to 20% to protect them from imports of cheap products.
The Vietnam Iron and Steel Association (VSA) suggested last week that the government should raise the import tax on steel embryos from 2% to 5%. Steel prices rose slightly after the proposal was submitted. Vietnam Steel Corporation raised the price by 500,000 to 700,000 VND/ton to 10.6 million to 10.7 million VND/ton. The prices of foreign manufacturers' products are 50,000 to 100,000 Vietnamese dong higher than their prices.
The chairman of the association, Pham Chi Cuong, said that due to the global economic downturn, the demand for steel from the manufacturing and construction industries has declined, and neighboring countries’ steel companies have cut prices and promoted exports to reduce the high stockpiles that have accumulated.
As the high interest rates of Vietnamese banks hit the construction industry, domestic steel demand has also dropped. According to a local newspaper Phap Luat reported last week, steel consumption in October contracted for the second consecutive month, with less than 120,000 tons. According to Vietnam Steel Association, Vietnam imported about 360,000 tons of steel in October, mainly from China. According to data from the General Statistics Office in Vietnam, imports of steel increased by 57% in the first 10 months of 2008 to US$6.1 billion. The latest report released on Monday pointed out that the import of steel this month increased by 46.3% over the same period of last year.
The Vietnam Iron and Steel Association (VSA) suggested last week that the government should raise the import tax on steel embryos from 2% to 5%. Steel prices rose slightly after the proposal was submitted. Vietnam Steel Corporation raised the price by 500,000 to 700,000 VND/ton to 10.6 million to 10.7 million VND/ton. The prices of foreign manufacturers' products are 50,000 to 100,000 Vietnamese dong higher than their prices.
The chairman of the association, Pham Chi Cuong, said that due to the global economic downturn, the demand for steel from the manufacturing and construction industries has declined, and neighboring countries’ steel companies have cut prices and promoted exports to reduce the high stockpiles that have accumulated.
As the high interest rates of Vietnamese banks hit the construction industry, domestic steel demand has also dropped. According to a local newspaper Phap Luat reported last week, steel consumption in October contracted for the second consecutive month, with less than 120,000 tons. According to Vietnam Steel Association, Vietnam imported about 360,000 tons of steel in October, mainly from China. According to data from the General Statistics Office in Vietnam, imports of steel increased by 57% in the first 10 months of 2008 to US$6.1 billion. The latest report released on Monday pointed out that the import of steel this month increased by 46.3% over the same period of last year.