Vietnam's HRC steel at risk of being investigated for anti-dumping by the European Commission

Having invested billions of dollars in the production of high-quality HRC hot-rolled steel, Vietnamese enterprises are still under pressure from cheap imports from China, and are about to be investigated by the European Commission for anti-dumping.

Vietnam's HRC steel is at risk of being sued by the EU for anti-dumping - Photo: CONG TRUNG

Vietnam has just initiated an investigation. anti-dumping Chinese HRC hot-rolled steel, the European Commission (EC) has "scrutinized" HRC steel originating from Vietnam. This is an unexpected development in the steel industry, many businesses are facing difficulties when all sides are facing difficulties at the same time.

Just initiated investigation into Chinese steel, Europe investigates Vietnamese HRC steel

The Trade Remedies Authority of Vietnam - Ministry of Industry and Trade informed on July 30 that this agency received information that the EC had received a complete and valid dossier requesting an investigation to apply anti-dumping measures on non-alloy or alloy hot-rolled steel coil products imported from Vietnam.

In case of initiating an investigation, the EC will send the relevant parties documents including the request, the decision to initiate the investigation and the investigation questionnaire.

"The Trade Defense Department recommends that enterprises exporting products subject to investigation monitor the case and have appropriate response plans," the agency informed.

The EC requested to provide a complete list of addresses, contact persons, and emails of steel exporters in the complaint, no later than August 5, 2024.

Previously, on July 29, the Ministry of Industry and Trade announced its decision to initiate an anti-dumping investigation into HRC steel from China and India after a period of reviewing the requests of two enterprises, Hoa Phat and Formosa Ha Tinh, and opinions of related enterprises.

Vietnamese enterprises invest billions of dollars, waiting for self-sufficiency in HRC steel sources

HRC steel is the upstream material for the production of galvanized steel, cold-galvanized steel, color-coated steel, steel pipes, and other steel products used in many applications in the construction, mechanical, and other industries. industry other.

As an important commodity, with the increase in HRC steel imports, the domestic manufacturing industry will certainly face difficulties, thereby not being able to produce other downstream products. However, investing in the production of this type of steel is not easy. Currently, Vietnam has two enterprises, Hoa Phat and Formosa, producing HCR steel with a total investment of up to billions of USD.

According to records, HRC steel output in the second quarter of 2024 decreased by 10% compared to the previous three months. The cause was determined to be difficulties in consumption in both domestic and export markets.

However, the amount of low-priced HRC steel flooding into Vietnam in the first half of this year reached 6 million tons, an increase of 1.5 times compared to the same period in 2023, which has somewhat put great pressure on the consumption of HRC steel in the domestic market produced by domestic enterprises.

HRC prices in the Vietnamese market increased in the short term in February 2024 but have continuously decreased from March to the end of the second quarter of this year.

The export market also faces many challenges from the surplus of hot-rolled coil steel as well as the strengthening of trade defense measures in importing countries.

Source