Adjust planning 2035 Steel: More nonsense

Planning based on calculations?

 

According to documents of the Ministry of Industry and Trade on 4-11, the ministry has sent comments to the ministries, branches and localities ... concerning the proposed suggestions for the contents of the draft proposal "Adjustment system planning production and distribution of steel by 2025, driven by 2035 ". This scheme after editing will replace the current plan was born 3 years ago.

 

After reviewing the draft, many experts that consult HCMC were identified, compared with Decision 694/2013 of the Ministry of Industry and Trade of the basic steel industry planning no changes. According to the new draft, the objective of the industry is the production of pig iron and sponge iron, sponge iron substitute using scrap steel. By 2020, domestic production of 8 million tons of pig iron and sponge iron, reaching 15 million tons (2025) and 30 million tonnes (2035). Steel production is 18 million tonnes (2020), 27 million tonnes (2025), 52 million tonnes (2035). The problem is that the goal of this planning is towards products that the domestic steel industry is now redundant, except for the high-quality steel products (steel alloy, stainless steel ...).

 

"Must be 15-20 years away using capacity planning approval from 2013, even though half of the power in this planning are either no longer invest any more", a leading expert on the steel industry do not want to be named said.

 

He proved that, the statistics show that in 2015, the actual production of embryos and consumption is about 6 million tonnes, compared to the design capacity of only 44.8%; pig iron production reached only 63% of design capacity. As a whole product categories that Vietnam's steel industry production in 2015 was 12 million tons, enough to meet 100% of billet and steel construction in the country. However, due to the opening of the free trade agreement (FTA) on a big and cheap Chinese steel overflow, businesses still imported steel, free how lower input costs. The billet import 1.9 million tonnes in 2015 is the reason so, not because the domestic enterprises steel production is insufficient to meet demand.

 

Therefore, if calculated only on the basis of existing capacity and the level of imports to establish the draft plan for the next phase steel, continue to prioritize the types of products that are surplus steel industry is a lack of skull. Often other countries when planning for the steel industry is based on GDP growth rates calculated on the level and growth of related industries, instead of calculating speed on steel imports as MOIT launched .

 

For example, in 2015, Vietnam 9.2 million tons shortage of hot rolled steel sheets (used for shipbuilding, mechanical engineering). This figure has been imported, calculated by more than 50% of total annual steel imports. However, the investment projects producing hot-rolled steel is very low, but the investment projects producing billet, pig iron and finished steel products are still blooming and supporters.

 

Back issues of the project are Lotus Steel

 

In recent parliamentary Parliament, Minister of Industry and Trade Tran Tuan Anh said about the steel industry continues to import billions of dollars each year should be no reason to not continue to develop steel projects balance including steel project of Hoa Sen Group in Ca Na, despite public opinion reaction last time.

 

The problem is that, so far Ca Na steel project approved new investment policy of Ninh Thuan Provincial Committee, has not officially licensed. And draft sent MOIT consultation on planning ministries had dated 4-11 project name of Lotus Steel Complex, divided into 5 stages from 2015 to 2035, with a total design capacity of up to 32 million tons of pig iron, sponge iron and billet square are commodities that the domestic steel industry has excess.

 

Meanwhile, according to information of the HCMC, as of 12-11-2016, the Natural Resources and Environment, Science and Technology has not received any official documents related to the steel project Ca Na Ninh Thuan, whether the responsibility of the Government to "doorman" issues related to the project as approved by the provincial decision-investment policy.

 

No official records of such projects, based, to put five phases of the project Lotus Steel Complex in the draft plan, stating the production of pig iron, sponge iron and billet?

 

Source: KTSG