Vietnam's steel price hopes depend on local iron output

Vietnam's steel price hopes depend on local iron output

According to Vietnamese industry officials at a recent steel industry conference, the country should increase its production of pig iron because the country is too dependent on iron imports. This statement was made at a conference organized jointly by the Vietnam Steel Corporation (VSC) and Korean steelmaker POSCO which aimed to inform local steel makers about the world steel market and ways to minimize risk despite unstable price changes. At the conference, officials also noted that Vietnam's dependence on iron imports has made Vietnam especially sensitive to volatile fluctuations in global iron prices in recent years. Currently, Vietnamese domestic pig iron production only meets 20% of national demand. Experts at the conference told local steelmakers that in addition to finding reputable pig iron suppliers, they should also sign long-term contracts in order to avoid excess risk and financial losses. According to the Vietnam Steel Association (VSA), last year Vietnam imported 4.5 million tons of pig iron and steel worth $1.6 billion, with pig iron accounting for 1.8 million tons and $498 million.