Vietnam will employ an anti-dumping tax on Chinese steel following South Korea and other countries’ effort of combating over supply from the world’s largest producer.
Starting from early March, Vietnam will put temporary tariffs on some hot-rolled coils, according to the Ministry of Industry and Trade’s statement on Friday. Vietnam is the biggest importer for Chinese steel, with hot-rolled coil being its major export.
For nine years until 2024, China has sent most of its steel into the global market to offset its weakening construction sector. This prompts the U.S. President Donald Trump proposed a blanket 25% tariff on all imports, this led many nations to consider imposing their own tax in response.
A stream of protectionist policies will force China to control its massive steel industry after years of waning demand. The Chinese steel industry is projected to slump as much as 1.8% in the future, while Vietnam steel will continue to grow.
Jack Shang and other analysts from Citigroup noted that the recent tariff move should push the Chinese government to roll out another set of supply reforms, which will increase supply discipline and boost profitability.
According to Citigroup, the temporary tariffs of around 19.38-27.83% will come into effect on 7 March for 120 days. Last year, Vietnam imported approximately eight millions tonnes of hot-rolled coil from China, and the tariffs will likely cover about half of that volume.
