Vietnam, which has been importing semifinished steel billet from China, could soon import finished steel from that country to make up a massive shortfall in billets that has sent production costs skyrocketing.
With domestic plants meeting only 50 percent of demand for semifinished steel of around four million tons per year, Vietnam imports large quantities from China. But China plans to increase billet prices to 500 US$ per ton soon.
If that happens Vietnamese steelmakers fear that steel prices will go over VND10 million (624 US$) per ton after having spiked to VND9.3 million last January from VND8.3 million earlier.
The Vietnam-based Italia Steel Company is already planning to buy 5,000 tons of finished steel from China.
But there is an outcry from Vietnamese steelmakers.
Hoang Anh Dung, marketing manager of the Vietnam Steel Company, warned the move would have grave consequences on the domestic steel industry and cause unhealthy competition.
He also expressed a fear that the Vietnamese steel industry could be gobbled up by its Chinese counterpart if more steel companies opted to import from China.
Dung also warned about the poor quality of steel products of dubious origin imported from China.
Source: Thanh Nien
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