Anti-dumping steel tax imposed

South Korean POSCO will be charged 7.02 per cent anti-dumping tax while other South Korean exporters will be taxed 19 per cent.

The decision takes effect after 15 days after the signing and will be in place for five years.

It follows a December 2015 appeal by four local steelmakers asking the Government for measures to prevent coated steel sheets shipped from mainland China and South Korea from being sold at cheap prices.

The ministry issued a decision on March 3, 2016 on initiating an investigation of the claims by domestic steelmakers and on September 1, the ministry issued temporary anti-dumping duties on the products.

Nguyen Van Sua, vice chairman of the Viet Nam Steel Association (VSA), said imported steel from South Korea accounted for a small portion of 4.57 per cent during the investigation period in comparison with other imported products, including coated steel for high-end markets of automobiles and electronics. In addition, the price of coated steel imported from South Korea was US$85 per tonne higher than that of locally produced steel in Viet Nam.

Steel exports show optimism

Viet Nam’s import-export report issued for the first time by the Ministry of Industry and Trade in the capital city on Wednesday predicts a positive outlook for steel exports as China’s steel exports are expected to decline due to surging demand at home.

However, it also notes that the industry faces fierce competition from cheap imported steel, and anti-dumping duties imposed by many countries including the US, Canada, Turkey, Malaysia, Thailand and Indonesia.

Since 2007, Viet Nam’s steel exports have faced 29 lawsuits, 18 of them for anti-dumping duties.

But despite the lawsuits, in 2016, the country’s steel exports rose 36 per cent from the previous year to 3.48 million tonnes worth $2.03 billion. Prices reached $580 per tonne, a 12 per cent year-on-year decrease.

In recent years, Viet Nam’s steel has been mostly exported to ASEAN markets due to high demand. However, exports to ASEAN have dropped due to trade defence measures by importing countries.

Last year, steel exports to the region reached only 1.81 million tonnes, 7.3 per cent and 18 per cent less in terms of quantity and value from the previous year.

On the other hand, exports surged to certain countries reaching $568.5 million (up 328 per cent) to the US, $121.4 million to South Korea (up 147.7 per cent), $33.3 million to Taiwan (up 270 per cent) and $37.5 million to Pakistan (up 221.5 per cent).