Synopsis:
The Vietnamese steel industry is embroiled in a heated debate over the potential initiation of an anti-dumping investigation against hot-rolled coil imports from China. While two domestic steel manufacturers have proposed the investigation, citing a sudden surge in imports and a sharp price decline, several other steel and galvanized companies have objected, arguing that such a move could have negative consequences for the entire industry and the Vietnamese economy. The Ministry of Industry and Trade is currently reviewing the proposal and assessing the evidence before making a final decision.
Article:
The Vietnamese steel industry is caught in a tug-of-war as two prominent domestic manufacturers, Hoa Phat Group and Formosa Ha Tinh Steel Corporation, have proposed an anti-dumping investigation against hot-rolled coil imports from China. The move comes amidst a sudden surge in steel imports and a sharp decline in prices, which the companies claim is indicative of dumping practices.
However, the proposal has faced stiff opposition from a group of seven steel and galvanized companies, including Hoa Sen Group, TVP Steel Corporation, and Nam Kim Steel Joint Stock Company, among others. These companies argue that there is no legal basis for initiating an anti-dumping investigation against HRC imports from China, and that such a move could have far-reaching consequences for the entire Vietnamese steel industry and the broader economy.
The crux of the issue lies in the crucial role that HRC plays as a primary material for a wide range of steel products used in various sectors, including construction, mechanics, and other industrial fields. Any disruption in the HRC supply chain or adverse fluctuations in prices could have a cascading effect on the entire steel industry, a concern echoed by the opposing companies.
Deputy Minister of Industry and Trade, Nguyen Sinh Nhat Tan, has confirmed that the Ministry has received the proposal and is currently reviewing the dossier submitted by the two steel manufacturers. The Ministry has asked the parties to provide additional information and has not yet concluded whether to initiate the investigation or not.
Tan emphasized that the relevant agencies must adhere to the current regulations and thoroughly study the practices and evidence before making a final determination. This measured approach reflects the Ministry's desire to navigate the complex and sensitive nature of the case, as it seeks to balance the interests of the different stakeholders within the steel industry.
The opposing companies have highlighted their concerns that an anti-dumping investigation could have far-reaching repercussions, not only for the steel industry but also for the overall Vietnamese economy. They argue that any disruption in the HRC supply or price volatility could have a domino effect, ultimately impacting various downstream industries that rely on steel products.
At present, only Hoa Phat and Formosa Ha Tinh are the primary producers of HRC in Vietnam, with the country's reliance on imports becoming increasingly evident. In the first two months of 2024, Vietnam's iron and steel imports have nearly doubled compared to the same period last year, with China accounting for 1.8 million metric tons, a three-fold increase in volume and a 2.4-fold increase in value.
As the Ministry of Industry and Trade deliberates on the proposed anti-dumping investigation, the Vietnamese steel industry finds itself at a crossroads, with divergent views on the way forward. The outcome of this decision could have far-reaching implications, not only for the steel sector but also for the broader economic landscape of the country.
Conclusion:
The Vietnamese steel industry is embroiled in a ferrous fury as two domestic manufacturers push for an anti-dumping investigation against HRC imports from China, while several other industry players vehemently oppose the move. The Ministry of Industry and Trade is currently reviewing the proposal, tasked with navigating the complex web of competing interests and determining the best course of action. The outcome of this decision will undoubtedly shape the future of Vietnam's steel industry, with far-reaching consequences for the broader economy. As the industry awaits the Ministry's verdict, the ferrous fury continues to simmer, highlighting the need for a balanced and carefully considered approach to this critical issue.
Source: STEELGURU
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