Vietnam’s anti-dumping investigation into China’s heatwave lacks sufficient evidence

On April 10th, according to the Vietnamese Ministry of Industry and Trade, an application for anti-dumping investigation of imported hot coils from China has been received. However, after preliminary evaluation, the evidence in the case is not sufficient. The Ministry of Industry and Trade is sending a letter requesting relevant enterprises to further correct and supplement materials. The results of the case review will also be reported to all parties in accordance with regulations.

Recently, two large steel companies in Vietnam, Fa and Formosa Plastics Hejing, applied to initiate anti-dumping investigations against heat coils originating from China. They believe that the quantity of heat coils exported from China to Vietnam JSH440J steel has increased significantly in recent years, and the selling price of Chinese heat coils has dropped from $618/ton in the first quarter of 2023 to $557/ton in the fourth quarter of 2023, posing a threat to Vietnam's domestic production resources from imported products.

However, contrary to the views of the two companies mentioned above, currently 12 local steel companies in Vietnam have opposed the proposal of anti-dumping investigations by Hefa and Formosa Plastics Hejing. Twelve Vietnamese steel companies have stated that their domestic demand for hot coils has not yet met domestic demand.

According to data from the General Administration of Customs of Vietnam, the total demand for hot coils in Vietnam reached approximately 11.52 million tons and 11.59 million tons respectively in 2022 and 2023. At present, the total production capacity of Hefa and Formosa Plastics Hejing is about 8.2 million tons per year. According to relevant report data, Hefa and Formosa Plastics sold approximately 4.88 million tons and 3.4 million tons of hot coils to domestic enterprises in Vietnam in 2022 and 2023, respectively, a significant decrease of 1.48 million tons. Although there is not much difference in the total demand for hot coils in Vietnam over the past two years, the decrease in domestic hot coil supply in Vietnam requires an increase in imports to meet domestic demand.

Regarding the price reduction of Chinese JSH440J steel hot coils, 12 local Vietnamese steel companies believe that price reduction and dumping are different concepts. The sales prices of global hot coils are mainly affected by the production costs and actual supply and demand of hot coils in various countries, and the prices of iron ore and coke, the main raw materials for hot coils, also fluctuate with market supply and demand. Their JSH440J steel prices operate objectively according to market mechanisms. Therefore, 12 local Vietnamese steel companies have stated that there is no basis for imposing anti-dumping duties on heat coils originating from China.