Local steel market hit by importing steels

Local steel market hit by importing steels

(KPL) The domestic steel producers have asked for the Government to deal with the illegal import of steels from Thailand and Vietnam.
Presently, the domestic steel market are encountering with the import of steels with cheaper price leading to many steel factories had to reduce its volume of production and some factories had suspended.
The entrepreneurs of steel factories expressed concern over the illegal import of steels flooded local market.
The steels were imported by retails merchants to development projects in Laos, which the steels were importing over the quota and without tax payment. After the construction project completing, the remaining steels would be sold out local market with cheaper price.
Director General of Saylong Steel Factory Company, Ms. Khamhuck Saiyomseng disclosed last week that her factory had to reduce the volume of steel production by half or 50 per cent due to imported steels flooded local market and the effect of world financial crisis.
She continued that her factory lost 2 billion kip at the beginning of last year.
Vice Director General of Vientiane Steel Industry Company Sonesavanh Soukdala said that Vientiane Steel Industry Company had also been hit by this concern matter and led to his company lost 14 billion kip.
The price of domestically made steel is now 6.5 million kip per tonne, while imported steel sells for only 6 million kip.