Chinese Non-VAT HRC Returns to Vietnam

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Cheap Chinese hot-rolled coil (HRC) steel has arrived in Vietnam this week. These goods are likely exported without paying the full 17% VAT in China, as other offers for Chinese HRC have higher prices.

Non-VAT steel exports, especially steel wire, are offered in ASEAN at more competitive prices than VAT-paid materials.

Non-VAT offers for commercial-quality HRC are up to 10 USD/ton lower than market prices. A trader in Hanoi said he saw Q195 offers at 535-538 USD/ton CFR on Wednesday morning. Last Friday's offer was around 548 USD/ton CFR Vietnam.

Another trader received a Q235B HRC offer at 540 USD/ton in Vietnam for a July shipment. "I think this lower price is from non-VAT sources," a trader in Ho Chi Minh City said. He noted there are many higher offers around 547-550 USD/ton CFR.

An offer for narrow HRC, with a width of 730 mm or more and a thickness of 3 mm Q195, was seen at 528 USD/ton CFR Vietnam. A trader said a buyer in southern Vietnam placed an order of 10,000-15,000 tons on Tuesday after negotiating the offer down to 525 USD/ton CFR. He heard current bids for non-VAT Q235 HRC are around 538 USD/ton CFR.

Re-rolled HRC SAE1006, 50% thickness 2mm, 50% thickness 2.3-3mm, was offered at 555 USD/ton CFR Vietnam, along with narrow Q195. However, this offer is similar to the VAT-included SAE 1006 HRC offers from Tier II mills.

Suppliers stopped offering non-VAT steel at the end of April amid reports that the Chinese government would restrict such exports. Some Chinese market observers believe export inspections are conducted domestically without Chinese Customs' involvement. Chinese market sources said, since no clear official action was taken, some exporters are now willing to take the risk again.

Introduction to Nam Kim Steel

Nam Kim Steel, also known as Ton Nam Kim, is a leading producer of galvanized steel in Vietnam. They provide high-quality steel products for various industries, ensuring durability and reliability. Their galvanized steel is widely used in construction and manufacturing, known for its excellent corrosion resistance and long-lasting performance. Nam Kim Steel continues to innovate and meet the demands of both domestic and international markets. For more information about our products and services, please contact us directly:

TEL/WHATSAPP: +84 965047865

EMAIL: trietlm@namkimgroup.vn

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