Vietnamese firms stress out over surging import of Chinese steel
Sunday, March 24, 2024, 10:32 GMT+7
Domestic steel firms are struggling to maintain their operations and retain workers amid the soaring import of Chinese steel.
Vietnam imported 2.6 million metric tons of steel in the first two months of 2024, nearly double the figure recorded in the same period last year, according to the General Department of Vietnam Customs.
Of the total, steel bought from China accounted for 1.8 million metric tons, a three-fold year-on-year increase in volume.
Many steel firms in Vietnam said that the nation’s steel imports are trending up, so Chinese steel is threatening local production.
Local companies are hesitating about expanding their operations in Vietnam due to the huge pressure from steel imports.
Meanwhile, a few have shifted their business to other fields.
In addition, the prices of steel imported from China and other nations into Vietnam have plummeted, according to some local steel producers.
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| Many Vietnamese steel producers are supplying steel products to multiple major projects in the nation. Photo: Cong Trung / Tuoi Tre |
The price of China’s hot-rolled coil (HRC) steel was lowered to US$557 per metric ton in the fourth quarter of 2023 from $618 set in the first quarter of last year.
The sharp drop in steel import prices is obviously affecting local production.
Statistics from the Vietnam Steel Association indicated that local producers can turn out some 23 million metric tons of raw steel per year, while the production capacity of steel products reaches nearly 38.6 million metric tons a year.
In fact, in 2023, the association’s members churned out some 28 million metric tons, while the consumption amounted to 26.3 million metric tons, with eight metric tons exported.
So the local production capacity effectively matched domestic demand.
Nevertheless, a notable quantity of steel continues to be imported into the country, posing a significant risk of reducing the market share of local manufacturers and potentially leading to dumping.
In 2023, Vietnam imported 13.8 million metric tons of steel, up 3.2 percent year on year and 11 percent against 2021.
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