February 21, 2020, Thailand Foreign Trade Department has notified about an anti-dumping investigation on galvanized steel imports from China.
According to the Committee on Anti Dumping and Subsidy, the decision was made at meeting No. 1/2020 on January 23, 2020, Posco Coated Steel (Thailand) requested an anti-dumping investigation on hot-dipped galvanized sheet steel, in coils and not in coils under HS code as below:
7210.4912.021 7210.4912.022 7210.4912.023 7210.4912.024 7210.4912.031 7210.4912.032 7210.4912.033 7210.4912.034 7210.4912.090 7210.4913.021 7210.4913.031 7210.4913.090 7210.4919.021 7210.4919.031 7210.4919.090 7210.4991.000 72 7212.3011.021 7212.3011.031 7212.3011.090 7212.3012.021 7212.3012.031 7212.3012.090 7212.3013.011 7212.3013.090 7212.3019.011 7212.3019.090 7225.9290.090.
Posco Coated Steel Thailand said that Galvanized steel imports from China were sold at a price of 35.67% lower than the CIF price. And there is some proof that the domestic industrial was injured by this dumping. Besides, the import volume from China has increased sharply in the period of investigation.
The interested parties have 30 days to respond to the Questionnaire and provide the proves that they were not dumped.
As soon as Thailand began an investigation, the volume of imports from Vietnam increased. Statistics show that imports from March and May from Vietnam increased sharply and are expected to spike in June.
In addition, by the end of June and early July, there will be preliminary results of the investigation and the inevitable outcome is that Chinese factories will be subject to provisional anti-dumping duties. With the high price because of duties, Chinese factories will be faced some difficult challenges to sell products in Thailand. And users in Thailand will search for other suppliers in another country. Vietnam steel with high quality and competitive prices will be a good choice for them. That’s why the volume of imports from Vietnam increase after the investigation was initiated.
But Vietnamese steel mill need to be careful because when the import flow moves to Vietnam with a sharp increase in the number of imports and a competitive price, it will draw attention to the Thai government. There will be 3 trade remedies that Vietnam may have to face:
- Anti-dumping: Competitive prices with a high possibility of being lower than Thai domestic production prices will make Vietnamese products fall under the scope of dumping investigation.
- Safeguard: The sharp increase in imports is the main reason for investigating safeguard measures. However, this capability is not high because it is difficult to prove in a period of only a few months with an increase in the number of imports that can affect domestic production. If the spike takes place longer than it is likely to apply this measure.
- Avoid tax evasion: The Thai government will suspect China evading taxes by importing to a third country, and that is Vietnam. Even so, this possibility is also unlikely because there is no evasion but actually export from Vietnamese factories to Thailand
This is a good opportunity for Vietnamese steel mills with the Thailand market. Before this time, products from Vietnam are so difficult to export to Thailand because the price can not compete with Chinese products. To avoid trade remedies investigations from the Thailand Government, the Vietnamese factory should be careful with the price, do not sell too low to later be subject to anti-dumping duties.
Equally important, the Thai Industrial Standards Institute has announced that they will apply a regulation to force Galvanized Steel from all countries to need to register TIS Certificate to access the Thailand market.
Please read my previous post in https://mrssteel.com.vn/tis-certificate-how-to-achieve-it/ to know more about TIS Ceritficate.
To better understand trade defense policies or technical barriers, please feel free to contact us:
Ms Lan – Juridical Manager of MRS Steel
Mobile – WhatsApp: 00 84 962343746.