Vietnam: China exports lots of steel stockpiles to Vietnam

Oct. 27 MetalBiz--It is reported that VNASteel's representatives recently claimed that now China is exporting a large amount of steel stockpiles to Vietnam and others at the low price.

VNASteel's representatives said that under the normal condition, China's steel mills produce 42mln-43mln tons of steel per month. But since July, 2009, China's steel production continuously increases, the steel output in August reached 53mln tons, the steel yield only in the early-ten-day hit 16.66mln tons. Presently China steel inventory is excessively high, because the falling domestic demand resulted in the sharply steel price. To solve the sales problem of steel stockpiles, China steel manufacturers are promoting the steel exports to part countries including Vietnam at the low price. In addition, China probably obtains a 12% tax refund rate of value-added tax from current's 5%, at that time, China's steel price will be much lower, having more export competitiveness.

VNASteel said that now a large amount of imported steel is pouring into Vietnam market, and the square billet price in the international market posts the downturn, and therefore it advices that Vietnam's steel enterprises should adjust down the steel price to deal with the issue.