Increased Trade Friction to Further Affect China Steel Exports -Shanghai Metals Market

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Increased Trade Friction to Further Affect China Steel Exports

SMM Insight 11:57:43AM Mar 28, 2012 Source:SMM

Shanghai, Mar. 28 (SMM) - In recent years, China has become a net exporter of steel products from a net importer, but more and more trade friction has become a major influential factor on China’s exports of steel products. According to the Commerce Ministry, China suffered the most trade friction for 17 consecutive years. Since the beginning of 2012, China has suffered 8 trade friction cases, with the amount up to USD 2.28 billion, up 80% YoY.

 

Steel and steel-made products are one of products suffering the most anti-dumping and anti-subsidy investigations. From March 19 to 20, the US made two anti-dumping and subsidy duty rulings for steel products, that is, steel wheel and galvanized steel wire, finding exports of the two kinds of Chinese exports to the US existence of dumping or subsidies. On March 22, the US Commerce Department announced to launch anti-dumping and anti-subsidy investigations over China-made stainless steel sink. Besides, Taiwan’s Ministry of Finance decided on March 26 to initiate an anti-dumping investigation over cold-rolled carbon steel products from China.

 

Steelease believes China’s steel and steel-related products will suffer more trade friction in the future for the following points.

 

First, some countries will step up efforts to protect domestic manufacturing industries for economic growth and employment concerns amid a slowing global economy. For the upcoming presidential election in the US, the US government will find a way to increase employment to meet part of the voter’s political factors, and trade friction is a lot of reasons related to employment.

 

Second, domestic steel prices have been at low levels after tumbling in September 2011 along with slowing economic growth and capacity surplus, highlighting price competition of domestic steel producers in overseas markets. This has added to other countries’ concerns over the existence of dumping of Chinese exports.

 

To sum up, Steelease believes that the outlook for China’s steel exports will not be optimistic in 2012, given economic growth slowdown in US and European countries and the RMB appreciation. The increased trade friction will no doubt affect China’s exports of steel products.

 

Trade Friction Cases for China Steel and Steel-Made Products, 2011-2012

Time

Country

Product

Case

12-Feb-11

Russia

Color-Coated Plate

Russia and other two countries started an anti-dumping investigation over Chinese color-coated plates, and made a final ruling on December 12, imposing 5-year anti-dumping duties.

11-Mar-11

Mexico

Seamless Steel Pipe

Mexico launched an anti-dumping inspection on Chinese seamless steel pipe, and imposed anti-dumping duties

21-Mar-11

Canada

Steel Grading

Canada made a final anti-dumping and anti-subsidy ruling on steel grading originating from China.

16-Dec-11

Canada

Seamless Steel Pipe

Canada made a preliminary anti-dumping and anti-subsidy ruling on seamless steel pipe originating from China.

28-Mar-11

US

Steel Pipe Fittings

The US continued anti-dumping duties on China’s steel pipe fittings.

22-Apr-11

US

Galvanized Steel Wire

The US planned to initiate an anti-dumping investigation over galvanized steel wire originating from China.

21-Apr-11

Brazil

Coated/Galvanized Plate

Brazil started an anti-dumping investigation over coated/galvanized plates originating from China and other four countries.

24-Jun-11

Indonesia

Cold-Rolled Coil

Indonesia initiated an anti-dumping investigation over cold-rolled coil originating from China and other three countries.

08-Apr-11

Thailand

Al/Zn-Plated Steel Products, Al/Zn-Coated Steel Products

Thailand started anti-dumping investigation over Chinese Al/Zn-plated, and Al/Zn-coated steel products.

11-Nov-11

Thailand

H Section

Thailand began the review of anti-dumping measures over China’s H-section.

16-Sep-11

Australia

Welded Pipe

Australia imposed an anti-dumping investigation over China’s carbon steel welded pipe and made a preliminary ruling on December 26.

09-Oct-11

South Africa

Stainless Steel, Bolt

South Africa launched an anti-dumping inspection over China’s stainless steel and bolt products. 

30-Sep-11

EU

Steel Wire Rope, and Steel Cable

EU began the review of anti-dumping measures over China’s steel wire rope, and steel cable.

21-Dec-11

EU

Seamless Steel Pipe

EU made a final ruling over China’s seamless steel pipe.

21-Dec-11

EU

Color-Coated Plate

EU started anti-dumping investigation over China’s color-coated plate.

22-Mar-12

Key Words:  trade friction   steel exports   anti-dumping and anti-subsidy  

Increased Trade Friction to Further Affect China Steel Exports

SMM Insight 11:57:43AM Mar 28, 2012 Source:SMM

Shanghai, Mar. 28 (SMM) - In recent years, China has become a net exporter of steel products from a net importer, but more and more trade friction has become a major influential factor on China’s exports of steel products. According to the Commerce Ministry, China suffered the most trade friction for 17 consecutive years. Since the beginning of 2012, China has suffered 8 trade friction cases, with the amount up to USD 2.28 billion, up 80% YoY.

 

Steel and steel-made products are one of products suffering the most anti-dumping and anti-subsidy investigations. From March 19 to 20, the US made two anti-dumping and subsidy duty rulings for steel products, that is, steel wheel and galvanized steel wire, finding exports of the two kinds of Chinese exports to the US existence of dumping or subsidies. On March 22, the US Commerce Department announced to launch anti-dumping and anti-subsidy investigations over China-made stainless steel sink. Besides, Taiwan’s Ministry of Finance decided on March 26 to initiate an anti-dumping investigation over cold-rolled carbon steel products from China.

 

Steelease believes China’s steel and steel-related products will suffer more trade friction in the future for the following points.

 

First, some countries will step up efforts to protect domestic manufacturing industries for economic growth and employment concerns amid a slowing global economy. For the upcoming presidential election in the US, the US government will find a way to increase employment to meet part of the voter’s political factors, and trade friction is a lot of reasons related to employment.

 

Second, domestic steel prices have been at low levels after tumbling in September 2011 along with slowing economic growth and capacity surplus, highlighting price competition of domestic steel producers in overseas markets. This has added to other countries’ concerns over the existence of dumping of Chinese exports.

 

To sum up, Steelease believes that the outlook for China’s steel exports will not be optimistic in 2012, given economic growth slowdown in US and European countries and the RMB appreciation. The increased trade friction will no doubt affect China’s exports of steel products.

 

Trade Friction Cases for China Steel and Steel-Made Products, 2011-2012

Time

Country

Product

Case

12-Feb-11

Russia

Color-Coated Plate

Russia and other two countries started an anti-dumping investigation over Chinese color-coated plates, and made a final ruling on December 12, imposing 5-year anti-dumping duties.

11-Mar-11

Mexico

Seamless Steel Pipe

Mexico launched an anti-dumping inspection on Chinese seamless steel pipe, and imposed anti-dumping duties

21-Mar-11

Canada

Steel Grading

Canada made a final anti-dumping and anti-subsidy ruling on steel grading originating from China.

16-Dec-11

Canada

Seamless Steel Pipe

Canada made a preliminary anti-dumping and anti-subsidy ruling on seamless steel pipe originating from China.

28-Mar-11

US

Steel Pipe Fittings

The US continued anti-dumping duties on China’s steel pipe fittings.

22-Apr-11

US

Galvanized Steel Wire

The US planned to initiate an anti-dumping investigation over galvanized steel wire originating from China.

21-Apr-11

Brazil

Coated/Galvanized Plate

Brazil started an anti-dumping investigation over coated/galvanized plates originating from China and other four countries.

24-Jun-11

Indonesia

Cold-Rolled Coil

Indonesia initiated an anti-dumping investigation over cold-rolled coil originating from China and other three countries.

08-Apr-11

Thailand

Al/Zn-Plated Steel Products, Al/Zn-Coated Steel Products

Thailand started anti-dumping investigation over Chinese Al/Zn-plated, and Al/Zn-coated steel products.

11-Nov-11

Thailand

H Section

Thailand began the review of anti-dumping measures over China’s H-section.

16-Sep-11

Australia

Welded Pipe

Australia imposed an anti-dumping investigation over China’s carbon steel welded pipe and made a preliminary ruling on December 26.

09-Oct-11

South Africa

Stainless Steel, Bolt

South Africa launched an anti-dumping inspection over China’s stainless steel and bolt products. 

30-Sep-11

EU

Steel Wire Rope, and Steel Cable

EU began the review of anti-dumping measures over China’s steel wire rope, and steel cable.

21-Dec-11

EU

Seamless Steel Pipe

EU made a final ruling over China’s seamless steel pipe.

21-Dec-11

EU

Color-Coated Plate

EU started anti-dumping investigation over China’s color-coated plate.

22-Mar-12

Key Words:  trade friction   steel exports   anti-dumping and anti-subsidy