Vietnam seeks import duty reduction on steel billets
In a meeting held yesterday, the Vietnam Steel Association (VSA), which gathered all re-rollers throughout the country, suggested that the government consider lifting the 5% import duty on billets. China's decision to scrap the 13% export rebate on steel billets adversely affected the Vietnamese market. In the first quarter of 2005, Vietnam looked to China to meet 42% of its steel billet needs. However, the increase in Chinese billet prices following the cancellation of export tax rebate has sent shockwaves through the Vietnamese steel sector. If the Vietnamese government were to completely do away with the import duty, the price of one metric ton of steel billet would fall nearly $20. This would translate into break-even points of $518-525 per metric ton for Vietnamese re-rollers.