HCMC – Vietnam will continue to rely on hot-rolled coil (HRC) steel imports to meet domestic demand, as the country’s current production capacity is insufficient, according to the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade.
Vietnam’s annual demand for HRC steel is around 13 million tons, but domestic producers can only supply around 8.6 million tons per year, leaving a substantial gap that needs to be filled by imports. This was emphasized at a press conference on October 23, according to local media.
Despite being Southeast Asia’s largest steel industry, Vietnam’s steel sector is grappling with challenges due to a real estate market slowdown, rising raw material costs, and large stockpiles.
In September alone, Vietnam imported 1.2 million tons of HRC steel, a 34% increase compared to the previous month, according to the General Department of Vietnam Customs.
This volume was more than double the country’s domestic production, even as an anti-dumping investigation into imported steel is ongoing.
In the first nine months of 2024, Vietnam imported nearly 8.8 million tons of HRC steel, a 26% year-on-year increase, with imports accounting for 171% of domestic steel production in the same period.
China was the source of 72% of Vietnam’s HRC imports, totaling 6.3 million tons, far exceeding the consumption capacity of local steel manufacturers.
The Ministry of Industry and Trade is currently investigating anti-dumping measures on HRC imports from China and India to protect domestic producers.
Chinese steelmakers, attempting to reduce stockpiles, have been cutting prices, leading to a decrease in international steel prices and further dominance in Vietnam’s import market.
The investigation includes sending questionnaires to both local and foreign companies. The domestic portion of the inquiry ended on October 6, while the foreign investigation concluded on October 22.
