Anti dumping tariffs by Vietnam may jeopardize intra-ASEAN steel trade

KUALA LUMPUR (Scrap Monster) : Vietnam has unilaterally imposed anti dumping tariffs on Malaysian origin cold-rolled stainless steel coils. Late December, Vietnam’s Ministry of Industry and Trade imposed provisional anti dumping duty on Malaysian steel exporters.

According to Vietnamese Ministry website, the Johor Baru based Bahru Stainless Sdn Bhd and other steel exporters of Malaysia will have to pay anti-dumping tariffs as high as 14.38% on cold-rolled stainless steel coils as against the current duty rates ranging from 0% to 10%. This is the highest duty rate after Taiwan’s 30.73%.

In response, Malaysian Iron and Steel Industry Federation called the move as ‘unfair’. According to the Federation, Vietnam’s decision was unilateral and would certainly impact the exports to Vietnam. Further, the decision would also spark off similar moves by other countries in the region, which may jeopardize the intra-ASEAN steel trade.

Malaysian steel companies export nearly 60,000 metric tonnes of steel products per annum to international markets. Bahru Stainless alone exports around 7,000 metric tonnes of cold rolled stainless steel to Vietnam.

According to media reports, the action by Vietnamese authorities follows incessant pressure from Vietnamese subsidiary of South Korean POSCO which faces tough competition from exported steel products from other ASEAN countries such as Malaysia, China, Indonesia and Taiwan.

Source: metal.com