Tiếng Việt
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On March 19, 2024, two steel manufacturing enterprises in Vietnam, including Hoa Phat Group and Formosa Ha Tinh Steel Corporation, sent a request to initiate an anti-dumping investigation to the Trade Remedies Authority of Vietnam regarding HRC products imported from China into Vietnam.
The reason for this request is the sudden increase in imported steel volume along with a sharp decrease in the price of HRC steel from China. According to Hoa Phat’s leadership, this action aims to prevent unhealthy competition and deliberate underselling. Hoa Phat and Formosa’s submission for initiating anti-dumping investigations is seen as an effort to detect dumping behaviors, where businesses need to collaborate to preserve the interests of the Vietnamese steel industry and support domestic manufacturing.
HPG’s leadership noted that currently, China is experiencing an oversupply situation, producing surplus products compared to domestic demand. Consequently, the country is implementing various policies to export this excess inventory to other countries through international enterprises.
In the steel industry, Chinese enterprises are accepting losses to push their products into Vietnam and other countries. Many Chinese steel enterprises incurred losses in 2023, accepting to sell below cost to ensure product placement, thus creating a situation of dumping in markets like Vietnam.
In response to this information, a group of 9 companies operating in the steel and galvanized industry, including Hoa Sen Group (HSG), TVP Steel Corporation, Nam Kim Steel Joint Stock Company, Dong A Steel Joint Stock Company, Southern Steel Company, Pomina Steel Corporation, Vina One Steel Manufacturing Corporation, Nam Hung Steel Company Limited, and Vietnam Japan Steel Manufacturing Corporation, have submitted a letter to the relevant authorities.
These enterprises have presented clear arguments to indicate there is no legal basis to initiate anti-dumping investigations against HRC imported from China into Vietnam. They also expressed deep concerns that conducting anti-dumping investigations could have negative consequences not only for the steel industry but also for the entire Vietnamese economy and society.
These companies emphasized that HRC is a primary material for producing various steel products used in many sectors such as construction, mechanics, and other industrial fields. Any negative fluctuations in the HRC supply could affect the entire steel industry. Currently, only two companies, Hoa Phat and Formosa Ha Tinh, have the capacity to produce HRC in Vietnam.
If the supply from China is no longer available or is restricted through the application of anti-dumping measures, Hoa Phat and Formosa will become the exclusive suppliers of this steel product, potentially leading to market monopolization, controlling and dominating the operations of other steel-producing enterprises.
According to a report from the Vietnam Steel Association, Vietnam’s demand for HRC consumption is estimated at 10-13 million tons per year, to serve production and necessary inventory reserves for business activities. However, the current production capacity of HRC in Vietnam is only about 8.2 million tons per year. Even if Hoa Phat and Formosa operate at maximum capacity and only sell domestically without exports, it would still not be enough to meet domestic demand.
Regarding whether HRC products imported from China into Vietnam are being dumped or not, the group of 9 Vietnamese galvanized and steel pipe enterprises affirmed that there is no dumping behavior. They also argued that importing HRC steel does not negatively affect domestic production because both Hoa Phat and Formosa have recorded good growth in output and sales volume during the period of 2019-2023.
According to information from Kallanish, Hoa Phat is selling HRC steel at a price of 610 USD per ton, while Formosa is selling it at a range of 583-590 USD per ton. However, the price of HRC steel from China is lower, ranging from 535-540 USD per ton.
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