India launches antidumping investigation on Vietnamese HRC imports

India has initiated an antidumping investigation on imports of hot-rolled flat products from Vietnam, according to a gazette notification published Aug. 14, seen by Platts and according to two sources familiarized with the matter.

The Directorate General of Trade Remedies (DGTR) will investigate imports of hot-rolled flat products of alloy or non-alloy steel, not clad, not plated or coated, from Vietnam of thickness up to 25 mm and width up to 2100 mm, classified under custom tariff headings 7208, 7211, 7225 and 7226, according to the notification.

The application for investigation was filed by the Indian Steel Association (ISA) on behalf of domestic producers JSW Steel Limited and ArcelorMittal Nippon Steel India Limited, alleging imports from Vietnam are causing material injury to the domestic industry as there were no significant differences in the product being imported and the ones produced by the domestic industry.

The investigation will entail a period of 15 months, from Jan. 1, 2023 to March 31, 2024, the notification said.

The applicants have requested for retrospective imposition of the antidumping duty, citing increased dumping from Vietnam and likely irreparable damage to an already struggling domestic industry if duties are not imposed.

India's move comes on the heels of Vietnam's Ministry of Industry and Trade launching an anti-dumping investigation(opens in a new tab) into steel hot-rolled coils from China and India July 26.

Hot-rolled coil (HRC) and strip imports from Vietnam to India stood at 576,000 mt from April 2023 to March 2024, about 203% higher than the April 2022-2023 period at 190,000 mt, according to Joint Plant Committee data. There were no HRC imports from Vietnam during the April 2021-March 2022 period.

Vietnam was the top export destination for India during the April 2021-March 2022 period, but exports to the country declined significantly in the following fiscal years due to weak domestic demand in the southeast Asian country and a weaker global steel market following the Russia-Ukraine conflict.

"The volume of the subject goods from the subject country (Vietnam) has increased in absolute as well as relative terms in comparison with the production of the domestic industry and consumption in India," the notification said.

Vietnam's Formosa Ha Tinh mill received approval of a renewal of Bureau of Indian Standards from the Indian government mid-May of this year for pipe grade HRC, after it had expired in December 2023. It also received BIS renewal for commercial grade HRC(opens in a new tab) in late-June.

Indian domestic HRC prices have touched their lowest in nearly three and a half years in recent days amid weak domestic demand and an inflow of cheaper imports from China, Vietnam and Japan. Domestic HRC prices stood at Rupees 49,800/mt ($593/mt) ex-works Mumbai Aug. 16, excluding an 18% goods and services tax.

"The landed price of the subject imports had the depressing effect on the prices of the domestic industry... because of the adverse volume and price effect of the dumped imports, its [domestic industry's] performance has deteriorated in respect of cash profit, market share, profit and return on investment," the notification said.

"This investigation can only have any meaningful impact if antidumping duties are announced soon," a west India based trader said, adding that, if imports continue, domestic prices will remain under pressure.

Vietnamese HRC offers were heard around $540-$550/mt CFR India levels this week, the trader said.

Global steelmakers expect the world's steel market to soften further in 2024(opens in a new tab) led by high levels of inexpensive steel products coming out from China.