Vietnam Exports Steel Billets Due to Big Inventory

Some companies in Vietnam are now exporting the materials to regional countries because they are facing big stockpile, according to local newspaper Youth on Monday.

The local steel billet firms said they were forced to export, as they could not sell the product on the domestic market, noting that the government had lowered the targeted economic growth in an effort to curb inflation, resulting in delay for many construction projects.

Steel billet makers exported 7,280 tons of steel billets at prices of 870-890 U.S. dollars per ton in the first four months of this year, the newspaper quoted statistics from the General Department of Vietnam Customs.

Van Loi Steel and Cast Iron Company in northern Hai Phong city has recently signed contracts on exporting 10,000 tons steel billets at prices of 915-920 dollars per ton to the Philippines and Thailand. The local company currently has 35,000 tons of steel billets in inventory.

The Vietnam Steel Association warned that there could be a shortage of steel following the recent billet exports. According to the association, Vietnam would need four million tons of steel billets this year.

Domestic producers are set to supply only half of the amount, with the remainder being imported.

Source: CRIEnglish