USA Commerce Department has issued duty- circumvention case ,according to which CVD/AD will be imposed on cold rolled flat products and coated flat rolled steel imported from Vietnam.The case was initiated in the month of November 2016.Preliminary decisions in the Vietnam circumvention cases have been subject to multiple delays.
Vietnam was a top supplier of cold-rolled and coated flat-rolled steel to the United States.By some estimates, up to 90 percent of the value of the Vietnamese steel shipped to the United States was produced in China.
Therefore the Commerce Department is trying to decide whether Vietnamese cold-rolled and coated flat-rolled steel made from Chinese substrate are subject to the same anti-dumping and countervailing duties as Chinese steel. If circumvention is confirmed, Commerce Department officials have said the imported steel from Vietnam would be assigned the same margins as the Chinese goods, which are subject to combined duties of as much as 522.23%.
The final results from the department in the anti-circumvention cases against Vietnam is due on February 16, 2018.
US Customs & Border Protection will collect anti-dumping duties of 199.43% and countervailing duties of 39.05% on coated material, with the corresponding levies on cold-rolled material at 265.79% and 256.44% respectively – the same duties as are applied to Chinese product.
Although steel-making capacity in Vietnam nearly doubled last year to 21.15 MnT that matched demand, which the Vietnamese Steel Association estimates at 22.3 MnT.Vietnam has exported 0.38 MnT of flat steel to USA from Jan-Sep’17 which accounts for 4.13% of share in first nine months of CY17.
However as per our analysis, Indian flat steel market is less likely to be impacted from this as India exports CRC and coated steel in smaller quantities to US. According to JPC, India has exported 26,000 MT GP to USA and 1,320 MT CR coils/sheets during Apr-Oct’17.
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