Vietnam probes imported steel sheets as shipments from China soar

By Bach Duong   July 7, 2016 | 04:49 pm PT
Prices of Chinese color-coated steel sheets are 30-40 percent lower than Vietnamese.

Vietnam’s Ministry of Industry and Trade has decided to launch an dumping investigation into the color-coated steel sheets imported from other countries.

The decision was made following petition from three domestic manufacturers-Dai Thien Loc, Nam Kim and Dong A, products of which together account for 25.17 percent of the country’s production of color-coated steel sheets. They said cheap imported sheets have brought about various difficulties for their business. Nearly all of the other domestic manufacturers of color-coated steel sheets have sent letters to show support for the investigation, the ministry said.

The Vietnamese ministry may impose anti-dumping duty on the imported products before the probe finishes if it finds that any delay in action would lead to huge loss to the domestic steel makers. The investigation will last no more than six months since the announcement of the probe on July 6.

Labourers work at a construction site of a residential apartment in Hanoi, Vietnam. Photo: Nguyen Huy Kham/Reuters

Labourers work at a construction site of a residential apartment in Hanoi, Vietnam. Photo: Nguyen Huy Kham/Reuters

According to data compiled by the three companies, Vietnam imported 311,116 tons of color-coated steel sheets in 2015, more than twice higher than 129,754 tons in 2013, and jumping 54.3 percent from 2014. The imports last year were worth VND5.24 trillion ($231 million), nearly double from 2013.

In the first half of this year, Vietnam imported 9.6 million tons of steel products, surging 48 percent year on year, with imports from China accounting for 60 percent of the total, data from Vietnam Steel Association (VSA) shows.

The Ministry of Industry and Trade on April 29 decided to raise anti-dumping tax rates on cold-rolled stainless steel imports from China and Indonesia, reduce the rate on cold-rolled stainless steel products from Malaysia while keeping it unchanged for cold-rolled stainless steel from Taiwan after its first review this year.

The ministry first applied the provisional rates that ranged from 3.07%-37.29% for products from China, Indonesia, Malaysia and Taiwan on September 5, 2014. The provisional taxes were effective from October 5, 2014 to May 13, 2016.

The new anti-dumping tariffs are effective from May 14, 2016 to October 6, 2019.

The anti-dumping duty on Chinese stainless steel has been increased to 17.47% from 6.58% for Chinese Shanxi Taigang Stainless Steel Co. Ltd. and to 25.35% from 4.64%-6.87% for other producers. The rate for Indonesian products has been raised to 13.03% from 3.07%.

Malaysian stainless steel will face a 9.55% anti-dumping duty, down from 10.71%, while the rate for Taiwanese products remains unchanged at 37.29% for Taiwanese Yuan Long Stainless Steel Corp. and 13.79% for Yieh United Steel Corp. and others.

Vietnam will also impose provisional safeguard duties of 23.3% on imports of billets and 14.2% on long rolled products, according to a March 7 document issued by the industry and trade ministry. The duties, which are effective for up to 200 days, take effect from March 22.

Related news:

> Chinese cheap steel floods Vietnam market

> Anti-dumping measures could turn into a double-edged steel sword

> China threatens WTO case over U.S. steel duties

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