This is a major issue given the context of the massive increase in imports of corrugated steel products this year. This situation for domestic steel producers has become increasingly gloomy since the beginning of the year.
Inventories have piled up. Some production lines have suspended operations. Revenues of this firm have been slashed by 50% and its market share has dropped from 7% to 4%.
"Many firms are also having to suspend their operational lines for colour corrugated and steel plated materials. Market prices have also fallen a lot", said Nguyen Thanh Nghia - General Director of Dai Thien Loc Company.
In the first five months of this year, the volume of imported corrugated and plated steel products has doubled that of last year. This has also coincided with 62 trade remedies have been imposed on Vietnamese steel products. Meanwhile, Vietnam has yet to implement any trade remedies to protect its domestic corrugated materials. Local producers are facing tremendous difficulties in maintaining production and market shares.
"It’s unfair that Vietnamese producers have to suffer this situation. It’s too difficult to maintain production as well as to stabilise the market", said Ho Quang Thiep - Vice General Director of Phuong Nam Company.
Imported steel billet doubled in the first two months of the year, while simultaneously experiencing a 20% price cut. 26 steel billets firms face a slump in sales and production.
"Cheap steel billet has flooded Vietnam’s market. This will hit our domestic steel billets firms. The worst situation is that Vietnam’s steel products will be determined by foreign firm. Consumer rights might also be affected", said Nguyen Van Sua - Vice Chairman of Vietnam Steel Association.
In light of the situation, Ministry of Industry and Trade’s Vietnam Competition Authority, has decided to conduct anti-dumping investigation on plated steel products and apply trade remedies on steel billets and long steel products.
