September 08, 2008

Vietnamese rebar makers facing threat from Chinese rebar imports

VietNamNet Bridge reported that imports of Chinese rolled steel rose sharply in August 2007 allegedly threatening locally made products.

In fact, imports of Chinese rolled steel decreased sharply in July 2007 to 8,000 tonnes as China removed the VAT refund scheme for exporters while imposing 10% on exported finished steel which made imports from China more expensive. However, the situation suddenly changed just one month later with imports of rolled steel from China unexpectedly increasing to 16,000 tonnes or doubles the imports in July 2007.

The problem lies in the fact that the billet imported from China is increasing in price. Currently, Chinese ingot steel is going for USD 590 per tonne. The increased import price for billets has reduced the gap between imported billet prices and rebars.

The Vietnam Steel Association VSA said that it is trying to discuss the creation of technical barriers with relevant ministries in order to prevent steel imports from overflowing into Vietnam. Also according to VSA, China is still trying to boost finished product exports and limit semi finished product exports therefore, the prices of all input materials for steel production are remaining at very high levels.