Hot rolled coil steel import output is 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 hot-rolled steel import output 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), South 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.

Indonesia's Trade Minister Zulkifli Hasan said on June 30, 2024, 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 war between China and the United States. The policy will take effect after the relevant regulations are issued, said Indonesian Trade Minister Zulkifli Hasan.

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 they are maintaining. Meanwhile, Vietnam's HRC production capacity currently meets 70% of consumption demand (8.5/12 million tons) and currently has 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