Vietnam’s Ministry of Industry and Trade has launched an anti-dumping investigation into HRC imports from China and India following complaints from the domestic industry, according to local media reports.
In June 2024, Vietnam imported 886,000 tons of HRC, which is equal to 151 pct of domestic production. Of this, 77 pct came from China. The volume of imported HRC in the first six months of this year increased sharply to an alarming level, reaching 1.7 times higher than domestic production.
In the first half of 2024, imported HRC volumes totaled nearly six mln tons, up 32 pct over the same period in 2023. This import volume is equal to 173 pct of domestic production. Imports from China accounted for 74 pct, with the rest coming from Taiwan, Korea, India, Japan, and other countries. HRC import turnover in six months reached USD 3.46 bln, with China alone accounting for USD 2.5 bln.
According to regulations, the Ministry will have 45 days from the date of officially receiving the petition to review and make a final decision.
The massive influx of cheap imported goods showing signs of dumping into Vietnam prevents domestic enterprises from operating at full capacity. According to the Vietnam Steel Association (VSA), the country’s demand for HRC is about 12-13 mln tons a year. Domestic HRC manufacturers have a capacity of about nine mln tons.
The market share of HRC steel sales for domestic enterprises like Hoa Phat and Formosa fell from 42 pct in 2021 to 30 pct in 2023. Despite meeting 70 pct of domestic demand (8.5 out of 12 mln tons), there are no preferential rates or tariff barriers to protect local production, leaving Vietnam vulnerable to imports from neighboring countries.
Vietnam’s steel industry has recently made significant progress, becoming self-sufficient in several steel products, particularly HRC, and is now a leading steel producer in Southeast Asia, ranking among the top 12 in the world.
