Export of Steel: Not every wish is being

DDDN Online on 19/12 has an article reflecting the consumption in the domestic market havemade ​​many tough steel companies to boost exportsHowever, the road to the world of steel VNalso faced bumpy As predicted by many experts as well as steel companiessteel exports in 2012 will face difficulties.

Difficult because of the exchange rate and interest rate

In particular, the exchange rate and interest rate are the two biggest challenges. Mr. Nguyen An – Pacific Steel Company CEO said, to be able to efficiently export steel companies to “watch” the exchange rate fluctuations to domestic contracts with partners. “Because most of our raw materials must be imported from foreign sources alone finding dollars to pay for the materials made companies lose an amount of difference in exchange rates are not small, not to mention the rate constant fluctuation in water “- An share him.
High domestic interest rates also make items of steel companies lose competitive advantage on the world market. Tin Nghia Ho – Steel Company CEO Dana – Italy shared by business characteristics of the steel industry is to use large loans, including a loan from the bank account for 70-80%, even 100% for the first from production while bank lending rates remain high, so low competitiveness and always in a state of dependence, while the steel companies to invest abroad, the production of their own capital accounts large part, to the competitiveness of their prices on the world market is very strong. Besides, according to Mr. Tin, because of the complicated economic situation and the political world, in 2012 many countries continue to implement economic policies have strict control, reduce investment, reducepublic debt which decreased consumption of steel products. The steel importer as U.S. and Western Europe will reduce the amount of imported steel that exporting countries such as China, Korea, Japan will admit. This means that the VN export markets shrinking.
Recently, the Ministry of Finance has proposed raising taxes on exports of some commodities, including steel built-up from 1.3 to 2%, 3% steel, while steel exports many countries are adopting legal assistance for product price. Specifically, China’s steel products are backed by the regime to maintain low rates. If VN taxation on exports of steel products for steel exports will decline, exacerbated excess steel.