Vietnam Coated Steel Mill is in the top 10 source mills for The United States (US) steel importers in year-to-date (YTD) 2019 as Global Trade Atlas said.
Nevertheless, on July 2, the US Department of Commerce (DOC) issued preliminary conclusions in the case of anti-dumping and countervailing duty investigation for Vietnam’s steel core using raw materials of Hot Rolled Steel Material imported from Taiwan (China) and South Korea.
In three preliminary circumvention rulings on Vietnamese steel, the Commerce Department said certain products produced in South Korea and Taiwan were shipped to Vietnam for minor processing before being exported to US as corrosion-resistant steel products and cold-rolled steel.
What is the problem to US steel importers?
US is the largest steel importer all over the world (2018 ranking), according to International Trade Administration.
US imported steel from more than 100 countries and territories in 2018. The top 10 source countries for US steel imports represented 76 percent of the total steel import volume in YTD 2019 at 5.6 million metrics tons (mmt) as: Brazil, Canada, Mexico, South Korea, Russia, Japan, Germany, Taiwan, Italy and Vietnam.
South Korea and Taiwan are two importers of the top 10 source countries for US. Therefore, 400% countervailing duty on Vietnamese steel products using substrates from South Korea and Taiwan is definitely a disadvantage for US importers.
From now on, US importers have limited sources to import flat coated steel. They will focus more on local suppliers which means that the price can be higher. Besides that, they will be less active to control the material for production.
What is the solution for US steel importers?
Vietnam Coated Steel Mill is still the most considerable solution for US Importers after the import tariffs.
In the past, Vietnam Coated Steel Mill focused on improving capacity of cold rolling, plating and color coating while the upstream production chain was not prioritized. Because of this reason, most of steels in Vietnam used Hot Rolled Coil (HRC) from China, Taiwan, and South Korea which have been imposed with countervailing duties by the US.
However, for Hot Rolled Steel Material, Formosa Ha Tinh mill from Vietnam has supplied a total of 2.1 million tons of HRC steel in the six-month period, 42% higher over the same period and exported about 20% of production, while most HRC is consumed domestically. It is expected to see about 5 million tons of HRC from Formosa Ha Tinh and 3.5 million tons of HRC from Hoa Phat Dung Quat in next year 2020, as Vietnam Steel Association.
Accordingly, the production chain will be highly completed. As a result, Vietnam Coated Steel Mill can penetrate many potential markets that are applying safeguard duties, especially US importers.
To import coated steel with reliable material, high quality and competitive price or have more information about Vietnam Coated Steel Mill, please contact directly as bellows:
Ms. Elena – Export Executive
Mobile, Whatsapp, Viber : (+84) 978 17 66 35