josemourinho

Billet manufacturers have a further 100,000 tons in inventory, hesaid.

The VSA has asked the government to cut export duties on billets by10 percent, he said, noting the existing duty of 20 percent is toohigh and makes exports uncompetitive.

World steel prices have fallen 30 percent in the past two months.

Deputy Minister of Industry and Trade Le Duong Quang said hisministry would recommend to the Ministry of Finance to considercutting the tax.

The government should set up an export duty regime that reduces orzeroes the tax when world prices are low or domestic demandplummets, he said.

On August 10, the finance ministry doubled the export tax on steelbillets to 20 percent to preempt their re-export for profit.

In Ho Chi Minh City, steel prices have fallen by VND2-2.5 millionper ton since the beginning of July to VND18.2-18.5 million.

The average price in the north, at VND17.5 million, is even lower.

The price drop has been caused by sluggish demand during theongoing rainy season and falling feedstock prices.

The price of billets imported from China has fallen by US$230-240per ton to $890-920 since the end of July.