Vietnam Imposes Antidumping Duties on Chinese Hot-Rolled Steel Products
Vietnam's Ministry of Industry and Trade has made a significant move to protect its domestic steel industry by imposing preliminary antidumping duties on hot-rolled steel products imported from China. The decision follows an investigation that revealed these products were being sold at unfairly low prices, causing harm to local manufacturers. The antidumping duties, which will be effective from March 7, 2025, will range from 19.38% to 27.83%, depending on the specific Chinese exporters.
The Investigation and Its Findings
The investigation conducted by the MOIT revealed that Chinese HRC products were being sold at prices below their fair market value, a practice known as "dumping." This practice has had a detrimental impact on Vietnam's steel industry, particularly affecting domestic producers who are unable to compete with the cheaper imported products. The government’s decision to impose these antidumping duties is aimed at leveling the playing field and safeguarding local businesses from unfair competition.
During the investigation, the MOIT focused on a range of hot-rolled steel products imported from China, including several categories of HRC. In the period between January and October of the previous year, China exported 7.68 million metric tons (mt) of HRC to Vietnam, making it the largest source of these steel imports to the Southeast Asian country.
Details of the Affected Products
The products subject to these new antidumping duties fall under a variety of codes, including:
• 7208.25.00
• 7208.26.00
• 7208.27.19
• 7208.27.99
• 7208.36.00
• 7208.37.00
• 7208.38.00
• 7208.39.20
• 7208.39.40
• 7208.39.90
• 7208.51.00
• 7208.52.00
• 7208.53.00
• 7208.54.90
• 7208.90.90
• 7211.14.15
• 7211.14.16
• 7211.14.19
• 7211.19.13
• 7211.19.19
• 7211.90.12
• 7211.90.19
• 7225.30.90
• 7225.40.90
• 7225.99.90
• 7226.91.10
• 7226.91.90
These product codes encompass a wide range of hot-rolled steel products, which are primarily used in various industrial applications, including construction, automotive manufacturing, and machinery production.
Impact on the Vietnamese Market
The imposition of antidumping duties is expected to have significant implications for the Vietnamese steel market. The domestic steel industry has long struggled to compete with cheaper imports from China, particularly when those imports are sold below the cost of production. By applying these tariffs, the Vietnamese government hopes to reduce the influx of unfairly priced Chinese steel and encourage a more level playing field for local manufacturers.
Additionally, this move may signal a broader trend of protectionism within the region, as other countries may look to implement similar measures to shield their industries from imported goods that could harm their domestic markets. The decision to impose antidumping duties is part of a larger strategy by the Vietnamese government to bolster its manufacturing sector and reduce its reliance on foreign steel imports.
Key Takeaways:
• Vietnam's MOIT has imposed preliminary antidumping duties on Chinese hot-rolled steel (HRC) imports.
• The duties will range from 19.38% to 27.83% and will take effect on March 7, 2025.
• The decision follows an investigation that found Chinese HRC products were being dumped, causing harm to the Vietnamese steel industry.
• In the January-October period last year, China exported 7.68 million metric tons of HRC to Vietnam.
• A broad range of Chinese HRC products is subject to the new antidumping duties, with specific product codes listed.
• The imposition of these duties aims to protect local steel manufacturers from unfair competition and promote fair pricing in the market.
