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Posts Tagged ‘steel’

POSCO to build auto steel sheet plant in southern China

In Uncategorized on November 16, 2010 at 3:25 am

Moratorium issued on steel projects due to oversupply

In Uncategorized on July 15, 2010 at 8:57 am




Moratorium issued on steel projects due to oversupply


QĐND – Wednesday, July 14, 2010, 20:56 (GMT+7)

The Ministry of Industry and Trade (MoIT) has asked cities and provinces to stop granting new investment licenses to steel projects and revise existing contracts as domestic steel supplies have outstripped demand.


Statistics from the ministry showed that as many as 30 provinces in the country have steel projects. Of the total, southern Ba Ria – Vung Tau.


province takes the lead in terms of the number of steel projects with 15, followed by Hai Phong, Phu Tho and Ha Tinh with nine and four


respectively. FDI projects account for the majority of steel production in Ha Tinh, Ba Ria-Vung Tau and Quang Ngai.


The ministry said Vietnam now had 65 steel projects with a yearly design capacity of more than 100,000 tonnes. In addition, additional


projects managed by the Vietnam Steel Corporation account for a total investment of 20 million USD.


Of the total, there are seven FDI projects and 58 domestic and joint ventures.


Last year, the industry met 54 percent of the country’s total demand of steel ingot, 40 percent of cold steel and 100 percent of building steel.


It is estimated that by 2015 the country will need 15 million tonnes of steel and 20 million tonnes by 2020. This could lead to redundancy as


total yearly capacity of the projects will be over 35 million tonnes, between 1.5-1.8 times higher than demand.


MoIT’s deputy minister Le Duong Quang said only 23 steel projects had been approved by the Prime Minister in 2007.


Quang said localities had granted licenses for 32 projects but they had not been approved by the PM, adding that this was not in conformity with Construction and Investment Law regulations.


He added that provinces which have not ensured necessary conditions of scale, technology, input materials, infrastructure and environmental audits could make the projects untenable in the long-run and have a negative effect on the environment.


To resolve the issue, the ministry asked the provinces to check the investment situation and production of the industry as planned. It would propose that the PM consider and grant licenses to projects which were eligible for implementation.


It also instructed localities to withdraw investment licenses from projects which are not making progress and have no legitimate reasons for their slow implementation.


The Vietnam Steel Association asked the PM to withdraw licenses of slow projects that would cause waste and affect the capacity of the industry.


Source: VNA


Source: QDND

MoIT’s direction on stabilising steel prices

In Uncategorized on April 18, 2010 at 3:27 pm




MoIT’s direction on stabilising steel prices


QĐND – Sunday, April 18, 2010, 21:32 (GMT+7)

The Ministry of Industry and Trade (MoIT) has asked cities and provinces to boost production and control the price of steel.  


Market management departments should deal with speculation and prevent trade fraud leading to State budget’s losses and negative effects on consumers.

 

 


The Vietnam Steel Association should help enterprises accelerate steel production projects and reduce steel imports while steel producers are not allowed to increase prices.


The Vietnam Steel Corporation should manage the delivery of steel delivery to facilitate a direct supply to end users and cut out the middle man. It should also make public the discount rate, steel quality and prices to ensure stable production.


According to the MoIT, retail steel prices in March rocketed by VND600,000 per tonne and 1.22 million tonnes of steel were used for construction in the first quarter.


Source: VOV


Source: QDND

China slaps penalties on US, Russian steel

In World on December 11, 2009 at 4:16 am

China said Thursday it will impose penalties on steel imported from the United States and Russia, claiming the countries were allowing it to be sold at a cut price.


The preliminary ruling requires importers of grain-oriented electrical steel, which is widely used in the power industry, to pay deposits from Friday, the commerce ministry said in a statement on its website.


“The domestic grain-oriented electrical steel industry suffered material damages” due to the dumping, the statement said following an investigation.


Dumping occurs when a foreign company sells a product in another market at less than normal value.


The ruling is the latest in a series of disputes between China and the United States, which have heightened trade tensions between the economic giants.










Companies will have to pay a deposit based on the difference — up to 25 percent — between the normal value of the steel and the cut price, the ministry said.


China also will charge for the first time an anti-subsidy deposit after the probe found US companies received government subsidies on grain-oriented electrical steel.


The deposits will be repaid to the importers if the preliminary ruling is overturned, according to Chinese rules.


Simmering tensions between Washington and Beijing boiled over in September when the Obama administration announced it would slap duties on Chinese-made tyres to protect US producers.


Since then, the world’s number one and three economies have traded a series of accusations of unfair trade practices.


In one of its retaliatory moves, Beijing lodged a complaint at the World Trade Organization and launched a probe into possible unfair trade practices involving imports of US car products and chicken meat.


 


 


Source: SGGP Bookmark & Share

China slaps penalties on US, Russian steel

In World on December 10, 2009 at 1:30 pm

China said Thursday it will impose penalties on steel imported from the United States and Russia, claiming the countries were allowing it to be sold at a cut price.


The preliminary ruling requires importers of grain-oriented electrical steel, which is widely used in the power industry, to pay deposits from Friday, the commerce ministry said in a statement on its website.


“The domestic grain-oriented electrical steel industry suffered material damages” due to the dumping, the statement said following an investigation.


Dumping occurs when a foreign company sells a product in another market at less than normal value.


The ruling is the latest in a series of disputes between China and the United States, which have heightened trade tensions between the economic giants.








A port worker signals for an overhead crane operator to hoist a huge coil of steel at a port in New Jersey.

Companies will have to pay a deposit based on the difference — up to 25 percent — between the normal value of the steel and the cut price, the ministry said.


China also will charge for the first time an anti-subsidy deposit after the probe found US companies received government subsidies on grain-oriented electrical steel.


The deposits will be repaid to the importers if the preliminary ruling is overturned, according to Chinese rules.


Simmering tensions between Washington and Beijing boiled over in September when the Obama administration announced it would slap duties on Chinese-made tyres to protect US producers.


Since then, the world’s number one and three economies have traded a series of accusations of unfair trade practices.


In one of its retaliatory moves, Beijing lodged a complaint at the World Trade Organization and launched a probe into possible unfair trade practices involving imports of US car products and chicken meat.


Source: SGGP Bookmark & Share

Domestic steel industry could be overwhelmed by FDI firms, warn analysts

In Vietnam Economy on September 8, 2009 at 5:08 pm

Viet Steel Group will begin work on the second phase of a steel plant in the Phu My industrial zone in the southern province of Ba Ria -Vung Tau at the beginning of September.








A steel shop in Ly Thuong Kiet Street, HCMC. With several giant foreign steel plants being built, the domestic steel industry faces the threat of becoming a bit player (Photo: SGGP)

Once completed, it will take the group’s total annual output to one million tons, making it Vietnam’s largest domestic steel player, but an analyst called its move risky.


The analyst, who wished to remain unnamed, said it means the group would have to take on foreign steelmakers, many of whom have been licensed to set up huge projects in the country.


The Ca Na steel complex in Ninh Thuan, which began construction of its first phase last November, will have a capacity of 14.42 million tons a year


It is a joint venture between Malaysian group Lion and Vietnam Shipbuilding Industry Corporation (Vinashin).


A Taiwanese steel company, Formosa – Sunco, also began construction of a plant last year in the central province of Ha Tinh with a capacity of 15 million tons.


Eight others are in various stages of construction.


Pham Chi Cuong, chairman of the Vietnam Steel Association, said while all these would see Vietnam’s steel output skyrocket in the next five to seven years, production by Vietnamese businesses would account for just a small share.


Another analyst, who also wanted to remain unnamed, said domestic businesses are treated unfairly by the authorities.


He said the most glaring example is the choice of location to build steel plants – advantageous locations are usually given to foreign and not domestic businesses.


While foreign companies are allowed to mine iron ore, domestic companies have to import either ore or scrap steel for their plants, he said.


Some domestic steel firms are considering pulling out of the industry.


Le Phuoc Vu, chairman and general director of steel firm Ton Hoa Sen, said his group is considering calling halt to a US$200 million plant.


Protect domestic businesses

Analysts point out that the main reason for encouraging foreign investment is to attract money, obtain new technologies, make domestic companies more competitive, and develop support industries.


So the incentives offered to foreign investors should not put domestic companies at a disadvantage, they said.


Economist Pham Chi Lan said the Government gives priority with regard to resources, land, and business rights to foreign and not domestic private businesses who contribute a great deal in providing jobs and economic growth.


She called on the Government to carefully consider before licensing FDI projects.


Source: SGGP

JFE to invest in steel complex in Quang Ngai

In Uncategorized on November 28, 2008 at 4:12 pm

HA NOI — Deputy Prime Minister Hoang Trung Hai has just permitted the Japanese JFE Steel Group to make a pre-feasibility study report for the building of a steel complex in the central province of Quang Ngai.


The complex, which is expected to produce from 6 to 10 million tonnes of steel per year, will be built in Dung Quat Economic Zone, according to Akihiko Ishida, head of the Planning and Co-operation Department of JFE Steel.


The project will apply advanced technologies to consume energy economically and to be environmentally-friendly.


All gas produced in the process of making steel will be recovered to generate energy. One part of this energy will be used to run the complex. The rest will be sold to meet the production demand of enterprises and people in the region.


The report will be submitted to relevant ministries and agencies. After considering ideas from them, Prime Minister Nguyen Tan Dung will make the final decision on incorporating the project into the country’s steel development vision for 2025.


The report must make clear the project’s objectives, targets, investment scale and estimated time frame for implementation, product category, market and technology.


Equipment, infrastructure facility investment, site clearance procedures and environmental projection measures are also required to be mentioned in the document.


The complex will employ between 2,000 to 3,000 workers, two thirds of them engineers and skilled workers. —

Work starts on country’s largest steel complex

In Uncategorized on November 24, 2008 at 1:43 pm

– A joint venture between Vietnam Shipbuilding Industry Group (Vinashin) and Malaysia ’s Lion Group on Nov. 23 kicked off construction of a 9.8 billion USD steel complex in central Ninh Thuan province.

Expected to be the largest of its kind in the country, the Ca Na Steel Complex will cover an area of 1,650 hectares of land and 300 hectares of water surface in Phuoc Diem commune, Ninh Phuoc district.

Once operational in 2025, the hi-tech complex is expected to turn out 14.42 million tonnes of steel annually and provide jobs for around 50,000 local labourers.

The project also includes two thermoelectric power plants with a combined capacity of 1,450 MW and a seaport capable of handling 15 million tonnes of cargo each year.

Speaking at the ground-breaking ceremony, Chairman of the Ninh Thuan provincial People’s Committee Hoang Thi Ut Lan urged local authorities to create favourable conditions for the investor to implement the project.

On the occasion, the Vinashin-Lion joint venture donated 2 billion VND to poor patients and gifted students in the province.-

Major steel project breaks ground

In Uncategorized on November 24, 2008 at 1:16 pm







Representatives from Ca Na Steel Complex and authorities signal to start construction of the nation’s biggest steel plant yesterday in the southern province of Ninh Thuan. — VNS Photo Phi Hung

NINH THUAN — Construction of the Ca Na Steel Complex, a US$9.8 billion joint-venture project between Malaysia’s Lion Group and the Viet Nam Shipbuilding Industry Group (Vinashin) began yesterday.


The building project, the largest-ever of its kind, will be located in Ca Na, in the central province of Ninh Thuan, and will cover 1,650ha of land and 330ha of sea. The complex will have a 50-year operating licence and a production capacity of 14.42 million tonnes of steel per year, providing 50,000 jobs.


The Lion Group holds 74 per cent of the venture and Vinashin holds the remaining stake.


“The joint venture will combine the strength of two companies, the steel producing expertise of Lion and the shipbuilding expertise of Vinashin, which will greatly benefit the two companies,” said William Cheng, chairman and managing director of the Lion Group.


Cheng said that despite the fact the steel market has fallen on bad times, he believed the sector would have a bright future when the economy recovered, as steel was essential for the development of many industries.


“The complex will not only help Vinashin meet its 2015 target of 60 per cent local product content, but also help develop other industries in the country,” said Vinashin CEO Pham Thanh Binh.


The complex consists of blast-furnaces, oxygen-transmitting kilns, refining furnaces and hot and cold-rolling mills. There will also be power plants and a deep-water port.


The project is divided into four stages and construction will last from 2008 to 2025.


In the first stage (2008-2010), which will require $2.75 billion in funds, a complex with a capacity of 4.5 million tons of steel, two thermo-power plants and a seaport, which can handle 15 million tonnes of goods per year, will be put into operation. While the Lion Group is the biggest steel maker in ASEAN, with a turnover of $5.4 billion in the 2008 fiscal year, Vinashin is the world’s fifth-largest shipbuilder, with more than 200 subsidiaries and 28 shipyards.


Eight steel joint-ventures, collectively worth tens of billions of dollars, have recently been licensed in Viet Nam.


Foreign investors say that Viet Nam offers advantages for big international steel corporations like improved investment climate, stable economic growth, cheap labour and investment incentives.


However, earlier this month the Government rejected a proposal by the Posco Company to build a steel complex in Van Phong Bay, as the project would affect the construction of the Van Phong International Port.


The project proposal also failed to ensure the region’s environment would be adequately protected, according to the Government’s office. —

Japan’s JFE Steel eyes 5 billion USD project

In Uncategorized on October 1, 2008 at 1:39 pm

Quang Ngai (VNA) – Details of a 5 billion USD steel complex capable of producing 6-10 million tonnes a year were put into discussion between the central province of Quang Ngai and the JFE Steel group of Japan on September 30.

The complex will be built close to the central coast within the expanded Dung Quat Economic Zone. Head of the JEF Steel group’s Planning and Cooperation Department Akihiko Ishida said the project will apply advanced technology consuming energy economically and friendly to the environment.

Gas produced as by-product during the steel making process will be collected to generate energy, he added.

Part of the gas production output will help feed the steel factory and the rest be sold to other enterprises in the Dung Quat economic zone and locals as well.

The complex is scheduled to employ between 2,000 and 3,000 workhands with two-thirds being engineers and skilled workers.

Provincial People’s Committee Chairman Nguyen Xuan Hue discussed with the Japanese investor on detailed requirements related to traffic, water supply and electricity systems as well as human resource development so that the province may give a helping hand.

The two sides reached consensus on several other issues in the feasibility study to be submitted to the Government for consideration.–