Hot rolled coil steel import output equals 173% of domestic production

According to Customs data, in June 2024, Vietnam imported 886,000 tons of hot-rolled coil (HRC), equal to 151% of domestic production. Of which, the amount of steel imported from China accounted for 77%. Regarding the price of imported HRC, products imported from China are very low, averaging 560 USD/ton, 45-108 USD/ton lower than other countries.

In the first 6 months of the year, the cumulative output of imported hot-rolled steel reached nearly 6 million tons, an increase of 32% over the same period in 2023. This import volume is equal to 173% of domestic production. Of which, the amount of steel imported from China accounts for 74%, the rest is from Taiwan (China), Korea, India, Japan and other countries.

Imports of cheap hot-rolled steel coils from China to Vietnam increased sharply (Illustration photo)

HRC import value in 6 months reached 3.46 billion USD, of which China alone accounted for 2.5 billion USD.

The main imported steel grades are Q195 and Q235. These steel grades are priced lower than ASTM, SPHC and other grades by 74-97 USD/ton.

Hot rolled coil (HRC) is base steel - input material for the production of steel pipes, galvanized steel, structural steel, container shells and many other downstream products.

On June 30, 2024, Indonesian Trade Minister Zulkifli Hasan said that oversupply in China has led to the country shifting its exports to other markets such as Indonesia. The country will soon impose import tariffs of up to 200% on Chinese goods to mitigate the impact of the ongoing trade competition between China and the United States. Indonesian Trade Minister Zulkifli Hasan said that this policy will take effect after the relevant regulations are issued.

Thailand and Indonesia have socio-economic conditions quite similar to Vietnam. The steel production output of the two countries is lower than domestic demand. The production volume of Thailand and Indonesia only meets 43% and 37% of consumption demand, respectively, and since 2019, these two countries have had anti-dumping taxes in addition to the MFN import tax that is being maintained. Meanwhile, Vietnam's current HRC production capacity has met 70% of consumption demand (8.5/12 million tons) and currently there is no MFN import tax and no other tariff barriers to protect domestic production.

Vietnam is currently the leader in steel production in Southeast Asia and is in the Top 12 largest steel producing countries in the world. Timely measures are needed to protect domestic production. The Ministry of Industry and Trade is reviewing the dossiers of domestic enterprises requesting an investigation into the imposition of anti-dumping duties on hot-rolled steel imported from China and India. The prescribed review period is 45 days from the date of official receipt of complete dossiers (June 14, 2024).

Source: https://congthuong.vn/san-luong-nhap-khau-thep-cuon-can-nong-bang-173-san-xuat-trong-nuoc-331521.html