Posted on 06 Oct 2008
The Vietnam Steel Association has asked that the government bans export of iron ore so that local companies can use it for production.
The Finance Ministry had last Monday cut export tariffs on steel products to 10 percent against the five percent proposed by the Ministry of Industry and Trade.
The appeal comes as at least four companies have stopped producing steel ingots because they are sitting on huge stockpiles that remain unsold although prices are falling.
The county presently has nearly one million tons of steel ingots worth US$1 billion in stock
Dinh Huy Tam, general secretary of the association, said steel prices have dropped very quickly and producers were caught between decreasing domestic demand and the government’s unreasonable tariffs.
The Finance Ministry had last Monday cut export tariffs on steel products to 10 percent against the five percent proposed by the Ministry of Industry and Trade.
Suggesting the ban on iron ore exports, the association said many steel producers have built blast furnaces to produce pig-iron since the demand for iron ore has increased more and more.
Just three companies: Hoa Phat, Van Loi and Dinh Vu, each needs millions of tons of iron ore per annum, the association noted.
