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FerrumFortis

Vietnamese Steel Pipes Face US Censure in Anti-Dumping Denouement

Tuesday, May 27, 2025

Synopsis: - The US Department of Commerce has ruled that welded stainless steel pressure pipes from Vietnam were sold below fair value. Companies including Sonha SSP Vietnam and Vinlong Stainless Steel now face high anti-dumping duties.

Final Verdict in Anti-Dumping Probe

On May 23, 2025, the US Department of Commerce declared the final results of its anti-dumping administrative review concerning welded stainless steel pressure pipes imported from Vietnam. The investigation focused on shipments made during the review period from July 1, 2022, to June 30, 2023. The USDOC determined that some Vietnamese exporters were selling these products in the US market at prices significantly below fair market value.

 

Heavy Tariffs Imposed on Two Main Exporters

The final ruling imposed a weighted average dumping margin of 144.59% on two major exporters: Sonha SSP Vietnam Sole Member Company Limited/Sonha International Corporation and Vinlong Stainless Steel (Vietnam) Co., Ltd. These companies were specifically identified as engaging in unfair pricing practices, which resulted in the imposition of hefty duties meant to level the playing field for American manufacturers.

 

Vietnam-Wide Rate Remains Unchanged

While the specific exporters faced high duties, the overall Vietnam-wide dumping margin remained fixed at 16.25%. This means all other Vietnamese exporters not individually examined or assigned a separate rate will continue to be subject to the 16.25% duty when exporting similar goods to the US.

 

Nature of the Imported Goods

The products in question are circular welded austenitic stainless pressure pipes, which are used in high-pressure industrial applications. These pipes typically have an outside diameter not exceeding 14 inches. The goods fall under several subheadings of the Harmonized Tariff Schedule of the United States, including 7306.40.5005 and 7306.40.5040, among others. These pipes are essential in industries such as chemical processing, oil & gas, and power generation, where strength and corrosion resistance are critical.

 

Justification of the Dumping Margin

The calculated 144.59% dumping margin for Sonha and Vinlong was based on a detailed comparison between export prices and normal values in the Vietnamese domestic market. The substantial difference indicated deliberate price undercutting to gain market advantage in the US. USDOC stated that these margins reflect significant distortions and justify remedial duties to protect the domestic steel pipe industry from unfair competition.

 

Impact on US Manufacturers & Global Trade

The final ruling is a victory for US domestic producers who had lodged the complaint. By imposing these tariffs, the US aims to prevent market disruption and safeguard thousands of manufacturing jobs. However, this decision could further strain trade relations between the US and Vietnam, especially in the stainless steel sector. Vietnam, like many Southeast Asian countries, has faced multiple US trade probes in recent years.

 

Historical Context of Vietnam’s AD Investigations

This is not the first time Vietnamese steel products have faced scrutiny. Over the past decade, Vietnam has been a frequent target of anti-dumping and countervailing duty investigations by the US, largely due to its growing export capacity and competitive pricing. The latest decision adds to an ongoing pattern of AD enforcement across a variety of steel categories.

 

What’s Next in the Process

The USDOC’s final determination concludes the current administrative review cycle. The US Customs and Border Protection will begin collecting the imposed duties based on the new margins. Affected companies may still pursue legal remedies through the US Court of International Trade, but unless overturned, the duties will remain in force and continue to apply to future shipments.

 

Key Takeaways

  • The US imposed a 144.59% dumping margin on Vietnam’s Sonha SSP and Vinlong Stainless Steel.

  • The overall Vietnam-wide rate remains unchanged at 16.25% for other exporters.

  • The ruling targets circular welded stainless pressure pipes used in industrial applications.

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