Removal of scrap import restriction demanded in Vietnam

Vietnamese steel traders have demanded that the government adjust regulations on scrap imports since the steel industry faces raw material shortage. The Environment Law, which came into effect as of July 1, 2006, restricted scrap imports for trading companies. According to the Vietnam Steel Association (VSA), the regulation has caused raw material shortage for certain plants using scrap as the main raw material in their billet productions. The regulation allowed only manufacturing companies to import scrap; however, manufacturing companies have difficulty in importing scrap themselves due to problems such as financial insufficiency. As a result, many billet steel plants have to suspend operations, and steel producers have to meet their billet requirements via imports instead of domestic market. Upon these developments in the Vietnamese market, a group of Vietnamese steel traders asked the government to adjust the regulation.