In this list

Vietnam's billet export tax proposal faces backlash from industry participants

Agriculture | Grains | Sugar | Energy | Coal | Thermal Coal | Energy Transition | Oil | Metals | Steel

Market Movers Asia, Nov 29-Dec 3: New Covid-19 variant to weigh on commodity markets

Metals | Steel

Platts Steel Raw Materials Monthly

Metals | Coronavirus | Steel

16th Steel Markets Asia Conference

Shipping | Containers

Containership schedule reliability improves for third consecutive month: Sea-Intelligence

Energy | Oil

Fuel for Thought: OPEC+ to set tone for 2022 with response to US oil release, COVID-19 variant

Vietnam's billet export tax proposal faces backlash from industry participants


Vietnam finance ministry proposes billet export tax

Proposal meets resistance from local mills, traders

Vietnam mills add clause on billet export contracts

A proposal by the Vietnam's finance ministry to impose export tax on steel billets is facing a wall of resistance from local traders and mill operators.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The Ministry of Finance proposed to the Vietnam government a 5% export tax on steel billets, from nil currently, and reduce import tax on some construction steel products on July 14. The aim is to stabilize local steel prices, which have been under pressure recently as the pandemic crippled domestic demand.

Vietnam played a major role in exporting billets to China and the Philippines in the last few years. According to S&P Global Platts data, 22 deals to China were observed in H1 2021 and 53 in full year 2020.

"If it is approved, it would likely contribute to stabilizing billet supply, prices in domestic market, and cooling down billet export," according to a Vietnamese billet trader.

The proposal comes at a time when the domestic steel industry is battling with sluggish demand, as coronavirus-related lockdowns hampered steel production. Vietnam's economic hub Ho Chi Minh City imposed a two-week lockdown on July 9 to contain a fresh outbreak of COVID-19.

"Due to the lockdown, all the workers in mills need to stay in the plant yard," a Vietnam-based mill source said.

For imposing a billet export tax, now may "not be the right time", the source said.

Meanwhile, a China billet importer told Platts that Vietnam mills have added a clause on billet export contracts regarding the potential risk of increased export tax, and that buyers would bear 100% risk on tax changes.