SteelOrbis talked to Tan Jin from Sino Glory International Company Limited about export markets and trade measures.
Can you tell us about your company?
Our company name is Sino Glory International Company Limited, located in Hong Kong. It was founded in 2013, so we're about 14? years old. We major in the steel business, especially exporting flat products overseas - to Southeast Asia, the Middle East market, South Africa, and South America.
What can you tell us about the export markets?
You know, China's production is the biggest in the world, and many Chinese trading companies and steel mills are engaged in exporting steel products overseas. So, the competition is very hard now. Also, foreign governments have introduced many tariffs or antidumping cases against Chinese steel, so it's very difficult for us to export.
What are the main products you are selling overseas?
Our company majors in hot rolled coil, cold rolled coil, galvanized iron, and tin plate - basically flat products.
In terms of geography, is Asia still the main market or are you expanding to other areas? For example, how big a share does the Middle East have in your exports?
For our company, the major market is South Asia - like Vietnam, Malaysia and Indonesia - which covers about 70 percent. Maybe 30 percent goes to India and the Middle East, and another small portion to Africa and South America.
As you already said, global protectionism is increasing every year, and especially last year it was so difficult because Vietnam and South Korea started antidumping duties for hot rolled coils, which represents huge volumes. How do you see Chinese steel exports being affected by all these duties and by what Trump is announcing every week? What is your view of the impact of this protectionism on Chinese exports?
I think it will have a big impact on future exports. Tariffs in Southeast Asia are much higher now, which will maybe block them from importing from China. So, this will impact our exports in the future a lot.
Do you expect the total export volume from China, which was over 100 million tons last year, to be similar this year or will it go down?
I think it's difficult to keep the same record as last year. It will go down for sure.
Talking about exports coming from the production side, do you expect less production this year for China? What are your predictions? What do you see, since you're working with steel mills?
Now maybe the Chinese government hopes the steel mills will reduce their production. But I think it's very difficult for individual mills to reduce their production. They hope other mills will reduce production first.
Are you working mainly with big mills or smaller mills?
We work as agents for big mill groups, like Baowu Group, Anshan and others - big mills because their supply and quality are stable.
You mentioned you are selling not only hot rolled coils but also GI and tin plate. What challenges and opportunities do you see in selling coated steel and tin plate products overseas? Maybe some new markets or competition problems?
Many trading companies in China are now thinking about processing steel more - maybe into some simple spare parts. The HS code becomes different, so maybe we can avoid antidumping duties. Maybe companies are thinking about this approach to exports.
Talking about China, what do you expect in terms of the economy? I know there is a reduction in domestic steel demand because of the real estate and construction slowdown, but at the same time other areas like manufacturing and car production are expanding. How do you see the development of domestic steel demand and the economy this year?
Now the Chinese government is shifting focus from real estate to new technology industries. But I think there's a long way to go because before the real estate industry covered a very heavy portion of the economy. Now shifting to the new economy takes time. So, I think these two or three years maybe it will be very hard for the Chinese government to shift the focus. On the other hand, Trump's tariffs will also have a big effect on Chinese exports of final products. So, maybe the difficulties will double.
Let me finish with one last question. What do you see as the principal opportunity for Chinese trading companies here in Turkey?
I think Turkey has an advantageous position because Turkey is the connection point between China and the Middle East and Europe. So, I think there's big potential for the Turkish market in the future.