Vietnam joins global movement against cheap Chinese steel

Proceeding from a latest article, Bloomberg unveils that Vietnam is taking a significant step in addressing the influx of Chinese steel by imposing anti-dumping tariffs, set to take effect in early March. 

Vietnam is set to implement anti-dumping tariffs on certain Chinese steel products, following the lead of countries like South Korea in responding to the influx of steel from the world’s largest producer. The Southeast Asian nation’s Ministry of Industry and Trade announced that temporary tariffs on hot-rolled coil (HRC) products will be enforced starting in early March. Vietnam is the largest importer of Chinese steel outside of China, with hot-rolled coil being a significant export item.

In 2024, China exported its highest volume of steel in nine years, driven by a slowdown in domestic construction and a push to target global markets. This surge has led countries such as South Korea, Brazil, and India to explore imposing similar tariffs, following the US 25 per cent tariff on all Chinese steel imports under President Donald Trump.

The imposition of these tariffs is expected to increase pressure on Beijing to take further action to regulate its steel industry, which has faced slowing domestic demand in recent years. As a result, steel futures in China fell as much as 1.8 per cent, while steel producers in Vietnam saw positive movement. Analysts, including Jack Shang from Citigroup Inc., noted that these tariffs should "encourage the Chinese government to initiate another round of supply reforms" to improve supply discipline and industry profitability.

Vietnam’s temporary tariffs, ranging from 19.38 per cent to 27.83 per cent, will come into effect on March 7 and remain in place for 120 days. China exported about 8 million tons of hot-rolled coil to Vietnam in 2024, and Citigroup estimates that the tariffs will likely cover approximately 50 per centof that volume, according to industry discussions.

The anti-dumping probe was prompted by major Vietnamese steelmakers Hoa Phat Group and Formosa Ha Tinh Steel Corp., who requested an investigation into imports from both India and China last year. However, the Vietnamese government has decided not to proceed with duties on Indian steel for now.

By Naila Huseynova