Billions of dollars spent importing Chinese steel
According to many steel enterprises in Vietnam, the trend of steel imports is increasing again in the first two months of 2024, especially steel from China, which is threatening domestic production.
Faced with pressure from imported steel, businesses are concerned or hesitant to expand production investment in Vietnam, and some major brands in the industry have even shifted to other fields.
According to statistics from the General Department of Customs, in the first two months of the year, the amount of imported iron and steel reached 2.6 million tons, nearly double the same period last year. Of which, steel imported from China was 1.8 million tons, 3 times higher in volume and 2.4 times higher in value.
For hot rolled coil (HRC) steel alone, Vietnam imported 1.8 million tons worth over 1 billion USD, of which China accounted for 72% of total output, equivalent to 1.4 million tons.
In 2023, Vietnam imported 13.8 million tons of steel of all kinds, up 3.2% compared to 2022 and 11% compared to 2021. Steel import turnover was 10.4 billion USD. The most imported steel product was HRC steel with 10 million tons, up 2.84% compared to 2022 (including hot-rolled steel in coils and sheets), accounting for 73% of the total steel imported to Vietnam.
According to businesses, steel prices from China and other countries supplying Vietnam have decreased significantly.
Chinese hot-rolled coil prices fell from $618/ton in the first quarter of 2023 to $557/ton in the fourth quarter of 2023. This has caused unfair competition, signs of dumping, and affected domestic production.
At the recent annual shareholders' meeting, Mr. Tran Thanh Nam, Deputy General Director of Hoa Sen Group, also predicted that HRC steel prices will continue to fluctuate unpredictably.
Steel consumption demand has not yet recovered. In particular, recent fluctuations in HRC steel prices have affected the group's business results in the 2022-2023 fiscal year.
Making domestic production difficult
According to statistics from the Vietnam Steel Association, the total production capacity of domestic steel enterprises currently reaches about 23 million tons of crude steel (square billets, flat billets). The production capacity of finished steel products reaches about 38.6 million tons/year, exceeding domestic demand.
Concerns about the steel import trend are well-founded as Vietnam has many large-scale enterprises in the steel industry such as Hoa Phat, Ton Hoa Sen, Ton Dong A... producing a variety of products from construction steel, hot-rolled and cold-rolled steel coils, galvanized steel to meet domestic demand and export to the US, Europe, Canada, Japan, and South Korea.
Meanwhile, input costs remain high and fluctuate due to increased loan interest rates and changes in exchange rates, causing many businesses to suffer heavy losses or shift their investments to other industries such as construction materials, real estate, education, finance, etc.
Consumption and exports of domestic steel enterprises have decreased, while the amount of steel imported into Vietnam remains high, enjoys 0% tax and is not subject to any trade defense measures, which is paradoxical according to enterprises.
HA (according to Tuoi Tre)Source
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