SHANGHAI, Nov. 22 (SMM) – The probe initiated by the Brazilian government will not significantly affect China’s seamless pipe exports, Steelease believes.
The Brazilian Foreign Trade Commission announced on November 14th it was launching an anti-dumping investigation into seamless steel pipe imported from China. Other nations, including India, the US, and the European Union, have also conducted anti-dumping investigations and levied high duties on China’s seamless pipe.
Although China’s seamless steel pipes exported to Brazil did fall initially due to anti-dumping and anti-subsidy investigations, China’s total seamless pipe exports were not largely affected since Brazil was not among the major destinations of Chinese seamless pipes. Exports to South Korea, India, and United Arab Emirates, the major buyers of Chinese seamless steel pipe, remain steady.
China exported 371,900 mt of seamless steel pipes during September, and total exports through the first nine months of this year were 3.88 million mt, down only 0.43% from a year ago.
Many of Chinese steel products have been the subject of anti-dumping and anti-subsidy actions during 2013, with nine cases involving seamless steel pipe. A series of trade disputes involving Chinese steel products have put great pressure on Chinese steel enterprises, but the National Bureau of Statistics still reported growth in the export of Chinese steel products this year, with October’s monthly export volume hitting a record high 6.15 million mt. Seamless steel pipe exports also rose, but at lower prices.
A majority of seamless steel pipe producers in China, particularly those in Shandong and Henan provinces, reported thin margins or even losses this year due to falling steel prices. Nevertheless, many producers were seeking to improve efficiency of rolling mills to lower rolling costs and raise earnings. Producers were also exploring overseas markets since China’s export duty rebate policy would enable enterprises to still profit at lower export prices.