From the secret output in recent years, enterprises (companies) production and sales in the steel industry have given some conflicting views. DN, to propose to the Government to continue to export (export) of iron ore, but also businesses and cried “hungry” material. Vietnam Steel Association (VSA) has also spoken out about this issue.

Mixed recommendations …

As some companies producing steel in electric furnaces (using scrap steel), domestic iron ore prices have fallen from 2,200 VND / kg to VND1,200 / kg (with half the world price in 2013). The policy of the government to stop the export of iron ore has been created for businesses by blast furnace steelmakers have benefited.

Accordingly, 13 enterprises are producing steel in electric furnaces with recommendations to VSA, the desire of ministries to reconsider the policy of banning export of iron ore to the domestic ore price equal to the world price, creating fairness between the domestic steel production enterprises.

However, on 02/06/2014, Hoa Phat Steel Joint Stock Company with 5 other companies signed the letter to the VSA, said that at present 15 blast furnaces of 14 projects of the company are producing a total demand for iron ore approximately 4.55 million tons / year. If the project is expected to end in 2014, 2015 put into operation, the total demand for iron ore is about 18.814 million tons / year.

That does not include the project is in the development plans of the steel industry by 2020, taking 2025 was approved.

So iron ore blast furnace to serve great future, while the reserves are not many, so easily lead to lack of ore, companies must import. Therefore, Hoa Phat Steel and 5 DN suggested authorities soon boost mining projects such as Thach Khe iron mine ore to meet the demand for blast furnace steel production.

Mr. Ho Nghia Dung, Chairman of VSA:

The state should strengthen the management of the inspection, checking the activities of mining companies and iron ore companies use right with the current regulations.

Steel Association say?

Mr. Nguyen Van Sua- vsa- Vice President said that the proposals made by some companies about the consideration for iron ore exports is impossible, if doing so would go against the policy of the Government. Meanwhile, Vietnam is not rich in iron ore. Iron ore should be protected and exploited effectively, to meet the demand for domestic steel producers.

According to geological statistics, the total reserves of iron ore resources in Vietnam is only about 1 billion tons, of which 2 biggest mines: Thach Khe mine has reserves of about 500 million tons, not put into operation; You Sa mine has reserves of about 120 million tonnes have been mined. In addition, a number of other mines scattered in localities with small reserves, low iron content. That fact shows that iron ore resources of Vietnam is very poor, even poor quality, insufficient to meet demand for the steelmaking raw material immediate and long term.

According to VSA, the construction enterprises to invest in the blast furnace had great effort by the investment rate higher than 3- 4 times higher than conventional electric oven. This is the domestic steel production enterprises take the lead in-depth investment in the production stage to be “upstream” of the metallurgical industry as steel production from iron ore in blast furnace technology, to utilizing local raw material iron ore to produce steel at competitive prices.

However, to create equality, fair competition between businesses in the steel industry, the companies have to balance. If supply exceeds demand, companies need to find their direction in the export product and should not compete with the lower prices are too low, affecting the companies in the industry.