(HSV VIETNAM GROUP) – Imports of iron and steel of all types and products from the Chinese market in the first 6 months of 2024 reached 5.79 billion USD, an increase of 52.6%, equivalent to an increase of nearly 2 billion USD over the same period last year.
The increased cost of importing steel of all kinds from one market to nearly 2 billion USD also means that the domestic manufacturing industry has difficulty consuming products. Difficulties weigh more heavily on businesses when domestic demand has not recovered.
Data just announced by the General Department of Customs, the import value of this group of goods in June 2024 reached 1.49 billion USD, down 13.8% compared to the previous month, equivalent to a decrease of 237 million USD.
Cumulatively in the first 6 months of 2024, imports of this group of goods will reach 9 billion USD, an increase of 25.2%, equivalent to an increase of 1.8 billion USD compared to the same period in 2023. Of which, iron and steel of all kinds increased by 1.21 billion USD and iron and steel products increased by 603 million USD.
Notably, imports of iron and steel of all types and products from the Chinese market in the first 6 months of this year increased by 52.6% (equivalent to an increase of nearly 2 billion USD), reaching 5.79 billion USD. Overall, imports from this market account for 64% of the country's import value of iron and steel of all types and products.
Vietnam is not the only country witnessing the arrival of Chinese steel.
China's steel exports are continuing to increase strongly as the country's steelmakers push excess production into the international market due to tepid domestic demand.
In the first 6 months of this year, China exported 53 million tons of steel, up 24% over the same period last year. Accordingly, the country's total steel exports this year are forecast to break the record of 110 million tons set in 2015.
Steel inventories of Chinese manufacturers are currently about 4 million tons more than at the same time in 2020 due to weak domestic demand as the economy decelerates and the real estate crisis persists.
Chinese steel flooded international markets, causing the price of this product to plummet. According to Nikkei Asia, the price of hot rolled steel coils in the Southeast Asian market has decreased from about 700-900 USD/ton (including freight) in the period from 2021 to mid-2022 to about 510-520 USD at the present time.
The price of short-term hot-rolled steel coil futures contracts on the Chicago Mercantile Exchange also dropped sharply from more than 1,000 USD/ton at the end of last year to about 660 USD/ton.
Although China's steel exports are relatively small compared to the country's total crude steel output of more than 1 billion tons last year. However, the world's largest steel producer accounts for more than 50% of total global output of 1.89 billion tons in 2023. Therefore, if domestic demand decreases, the country's excess capacity will be pushed to export and have a major impact on the global market.
Weak domestic demand, large supply surplus, and the promotion of Chinese steel exports to many markets have caused some countries to consider using trade defense measures.
The number of anti-dumping investigations against Chinese steel worldwide has increased rapidly. If in 2023, there will only be 5 cases, of which 3 are related to Chinese steel products. From the beginning of the year until now, the number of investigations is 14, of which 10 cases are related to Chinese steel. Countries conducting anti-dumping investigations this year include Vietnam, Thailand, Korea, Brazil, Chile...
On June 14, the Ministry of Industry and Trade officially received dossiers from domestic businesses requesting an investigation into imposing anti-dumping tax on hot rolled steel (HRC) imported from China and India.
Within 45 days from the date of confirming the complete and valid dossier, the Investigation Agency will evaluate the dossier and submit it to the Minister of Industry and Trade to consider whether or not to investigate the case.
Ha Diem HSV