Vietnam's Anti - Dumping Ruling On Prestressed Steel Strands

Vietnam's Anti-Dumping Ruling On Prestressed Steel Strands

On January 14, 2025, the Ministry of Industry and Trade of Vietnam issued Announcement No. 143/QD - BCT, making a positive final anti-dumping ruling on prestressed steel strands originating from Malaysia, Thailand, and China.

The anti-dumping ruling decided to impose anti-dumping duties ranging from 9.79% to 28% on the relative enterprises. Among them, the tax rates for Chinese enterprises involved range from 10.48% to 28%. This case influences the products under Vietnam's tariff codes 7312.10.91 and 7312.10.99. The measures will be carried out 15 days after the announcement is issued and will be valid for five years.

Based on this anti-dumping ruling on prestressed steel strands, let us retrospect the situations of prestressed steel strands in the past few years.

China has been a big exporter of prestressed steel strands (steel cables) to Vietnam, prestressed steel strands are a key component in the construction and infrastructure sectors, especially for projects like bridges, roads, and buildings.

According to the latest statistics, in 2023, China's export of prestressed steel strands to Vietnam reached approximately 120,000 tons, a 7% increase from the previous year(112,000 tons)

Yearly Export Data (2021-2023):

2021: 100,000 tons

2022: 112,000 tons

2023: 120,000 tons

These figures indicate a steady increase in export volume, driven primarily by Vietnam's expanding infrastructure projects and the increasing reliance on high-quality steel products.

China's Market Share in Vietnam

Market Share: China is the dominant supplier of prestressed steel strands to Vietnam, holding approximately 70% of the market share. Because of the advantages of China's manufacturing capabilities, competitive pricing, and logistics.

Impact of Vietnam's Anti-Dumping Ruling on China's Export of Prestressed Steel Strands

Export Decline, Preliminary forecasts that export quantity is estimated to drop by 10-15% in the first year after the tariff is imposed, as Vietnamese buyers will look for alternative sources in the meantime to negotiate with Chinese exporters for lower prices to compromise the increased costs.

Shift in Market Share, countries like South Korea, Japan, and India to gain a larger share of the Vietnamese market. These countries may benefit from the higher quality or competitive pricing of their products, along with lower tariff barriers compared to Chinese steel.

Long-Term Impact on Trade Relations

Diversification of Suppliers, Countries with competitive advantages in steel manufacturing, such as South Korea and Japan, may see an increase in market share as they benefit from more favorable tariff treatment under existing trade agreements.

Shift in Sourcing Strategies,Vietnamese construction firms, and infrastructure projects relying heavily on prestressed steel strands might explore alternative supply chains

Impact on Chinese Steel Industry

Domestic Adjustments: Some companies may reduce their export volumes to Vietnam and focus on other markets, such as the U.S., Europe, or Southeast Asia, where demand for steel products continues to be strong.

Anti-Dumping Measures by China, In response to Vietnam's anti-dumping measures, China will consider implementing its own tariffs on importing steel products or other products originating from Vietnam.

Vietnam's anti-dumping ruling will reshape the dynamics of China's export of prestressed steel strands to Vietnam. The immediate effect may be a reduction in exports. Chinese exporters will likely adjust their strategies by seeking new markets, improving product quality, and exploring alternative exporting countries.