Though Directive 02 / CT-TTg of the Prime Minister on strengthening state management for the exploration, exploitation, processing, use and export of minerals have effect from the beginning 2012. The Directive provides for the prohibition of the export of minerals as iron ore, copper, lead and zinc, apatite ... so for the deep processing of water, limiting the loss of natural resources and environmental protection school. However, recently, for reasons of construction steel manufacturing companies in trouble because of the policy of banning iron ore exports have created a business opportunity for Hoa Phat steel company is trying to force the price of iron ore, up 13 steel companies blood moves have sent a letter to the Government center.

 

In the dispatch sent VN Steel Association (VSA), 13 enterprises including steel company with domestic brands like Pomina Steel Tay, the Australian steel manufacturing company SSE, Shengli Steel, Vinakyoei, Vietnam Steel Corporation -German production, Italy steel JSC Vietnam, VSC-POSCO steel Company, Vietnam French steel company, Pacific steel Corporation and steel Corporation Dana Italy has said that 2 years ago, since the policy of banning iron ore exports has impacted the effective negatively on the development of steel enterprises.

 

According to the company, to stop exporting iron ore output cut sources of ore in the country that the prices down from 2,200 VND / kg was VND1,200 / kg, reduced by half the world's iron ore prices. Meanwhile, companies purchase only domestic ore to produce blast furnace technology is the Hoa Phat Steel, previously committed to the entire consumption of processed iron ore prices equal to or higher than export prices, this this company immediately press prices down, only half the world price, which cost the "input" of Hoa Phat is much cheaper than the input costs of steel production enterprises in electric furnace technology, or manufactured from imported steel.

 

The main advantage of this almost absolute cost steel producer Hoa Phat's cheaper than the competing firms in the market. The companies said that with the advantage of cheap and active materials are not forced to be imported and domestic prices, HPG is likely to cause market manipulation, making all the efforts of the other steel companies are becoming meaningless, because it can not compete with Hoa Phat.

 

Ministry of Industry and Trade does not intervene in prices

 

Standpoint, Steel Association, Mr. Ho Nghia Dung - Chairman of VSA - expressed the view when said iron ore export ban policy of the Government is consistent. In fact, the remaining reserves of iron ore in the country is not much, so government policy priorities for deep processing, export ore not cause many consequences, difficult to control. The steel companies said that this policy can only benefit the Hoa Phat Steel Company nor right, to the association does not agree with this view of the company. "I think the core of the problem is that the state should coordinate with local authorities to further strengthen the management, exploitation, processing and utilization of minerals iron, so transparent, so that the DN healthy competition ".

 

 

At a regular press briefing in May by the Ministry of Industry and Trade held, Bui Quang Story - Deputy Director of the Department of Heavy Industry - reaffirmed, no matter the steel companies affected by the undertakings of the iron ore export ban government. Before the controversy on iron ore exports, the Ministry of Industry and Trade has held two meetings with businesses ore mining and trading, the sale proposal must follow the principles upon purchase and sale. Ministry of Industry and Trade does not intervene in price.

 

According to his story, the competitiveness of domestic enterprises, the total output of manufacturing industry as 2013, more than 5.5 million tonnes is produced from scrap metal was 4.7 tonnes, 8 million tonnes from iron ore. In addition to Hoa Phat current design capacity of 800,000 tonnes / year of ore, 2 firms produce steel from ore is the Taiyuan Iron and Steel Company (200,000 tons / year) and Hoan Nguyen Steel Company (150,000 tons / year). He also confirmed that the companies producing steel from ore resources by saving materials, fuel, energy, good governance should be more advantageous than steel enterprises have to depend on imported billets.