Amid rising domestic demand and an increase in exports, the Vietnamese government plans to impose a 5pc export tax on the steel billets. The government is also likely to cut the import tax on some steel products to 10-15pc from 15-25pc, according to a statement. The clarity on the date of imposition is still awaited.
The move aims at controlling domestic steel prices in Vietnam amid inflated steel prices globally. It could benefit steel companies to cut costs amid halted domestic demand due to a resurgence of COVID-19 slowing activities at infrastructural projects.
In the first half of 2021, Vietnam’s steel and iron exports surged by 50pc to 5.52mn mt against 3.70mn mt exports recorded in H1 2020. Out of the total steel exports in June of 1.02mn mt, the highest volume of 122,959mt was exported to China, followed by 87,264mt to Cambodia and 85,648mt to Belgium.
The country’s steel and iron imports were down by 12pc to 5.81mn in the first six months against 6.64mn mt in H1 2020. Out of the total 1.124mn mt steel imports in June 2021, the highest volume 515,341mt was imported from China, followed by 179,086mt from India and 158,672mt from Japan.
Ferrous scrap imports
In H1 2021, Vietnamese ferrous scrap imports rose by 11pc to 2.79mn mt against 2.50mn mt. Out of the total 707,605mt ferrous scrap imports in June 2021, the highest volume of 273,923mt was imported from the USA, followed by 249,543mt from Japan and 39,026mt from the UK.