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Vietnam imports record amount of steel from China

HANOI - Vietnam's steel imports from China surged to US$160 million (VND2.5 trillion) for the first eight months of the year and now account for 14% of all steel imports into the country, said the Ministry of Trade.

In the first quarter of 2004, Chinese steel represented 5.7% of the country's total steel imports, but that figure has more than doubled this quarter cementing China's place as the third-largest steel exporter to Vietnam, behind Japan and Russia.

Chinese steel has become more attractive to Vietnam after China initiated economic policies in April to prevent its soaring economy from overheating.

The regulations, which reigned in excessive construction investment and tightened financing for the steel industry, have decreased domestic demand for steel and driven down the price.

Chinese companies currently sell rolled-steel to Vietnam for $480-500 per tonne, $50-70 lower than from European companies. They also sell steel ingot for $20 less per tonne than Russia and Ukraine.
Chinese steel production has been increasing since the beginning of the year. In the first eight months of the year, the country produced 170 million tonnes, a 21.1% increase from the same period last year.

Already the world's largest steel producer, China's many advantages, including inexpensive labor, abundant resources and advanced technologies, have enabled it to develop steel of equal quality at a lower price than other countries.

In the first eight months of the year, Vietnam imported a total $1.55 billion worth of steel, said the Trade Ministry.

(Asia Pulse/VNA)

Oct 1, 2004

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