Cheap Hot Rolled Steel Continues to Flood Vietnam in April
The amount of hot rolled steel (HRC) imported into Vietnam continued to rise, reaching 890,000 tons, which is 1.5 times the domestic production in April. Hot rolled steel imported from China accounted for 71% and was unusually cheap.
According to customs data, in April 2024, the amount of hot rolled steel imported into Vietnam continued to increase, reaching 890,000 tons, 1.5 times the domestic production. Of this, 71% was imported from China.
In the first four months of 2024, the total amount of hot rolled steel imported into Vietnam was 3.93 million tons, up 32% compared to the same period in 2023 and equivalent to 159% of the total domestic production of HRC. Imports from China accounted for 73%, with 2.9 million tons, more than double the amount in the same period in 2023.
Despite being the same type of product, hot rolled steel imported from China has consistently been priced lower than that from other countries. Specifically, the price of HRC from China in the first four months of the year was 32-59 USD per ton lower than the average price from other markets. When compared to HRC from South Korea, Chinese hot rolled steel was 123 USD per ton cheaper.
The trend of increasing imports is expected to continue strongly throughout 2024. This poses a significant risk to domestic manufacturers.
Recently, the US announced an increase in tariffs on Chinese electric vehicles to over 100%, to prevent cheap goods from flooding the US market. Specifically, tariffs on electric vehicles imported from China will rise to 102.5% this year, from 27.5%. Other Chinese products also facing increased export taxes to the US include solar panels, steel, aluminum, and medical equipment.
Thailand is also investigating and considering extending new anti-dumping measures on Chinese hot rolled steel due to the influx of cheap imports, which has caused Thai steel companies to operate at only 30% capacity, lower than the Southeast Asian average of 58%.
Wirote Rotewatanachai, President of the Thailand Iron and Steel Institute, told Nikkei that allowing the Thai steel industry to shrink would be a national security issue. He believes that the local industry needs to be protected in case of supply chain disruptions, especially given the current geopolitical conflicts.
Introduction to Nam Kim Steel
Nam Kim Steel, also known as Ton Nam Kim, is a leading producer of galvanized steel in Vietnam. They provide high-quality steel products for various industries, ensuring durability and reliability. Their galvanized steel is widely used in construction and manufacturing, known for its excellent corrosion resistance and long-lasting performance. Nam Kim Steel continues to innovate and meet the demands of both domestic and international markets. For more information about our products and services, please contact us directly:
TEL/WHATSAPP: +84 965047865
EMAIL: trietlm@namkimgroup.vn
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