With global steel oversupply, unfair import practices are intensifying. Japan’s steel industry warns that without urgent trade defense measures, local producers could face severe competitive pressure. A group of five major steel industry associations, Japan Iron and Steel Federation (JISF), Special Steel Association of Japan, Japan Stainless Steel Association, Japan Wire Products Association and Non-integrated Steel Producers' Association, is calling on the government to establish an anti-circumvention system, a tool already adopted by 18 of the G20 nations, to safeguard fair trade and strengthen the impact of antidumping duties.
Rising pressure from global steel exports
China’s record-high steel exports, driven by excessive production capacity, are reshaping global markets. Many countries have responded with trade defense actions, leading to mounting pressure on Japanese steel exports and growing concerns about import surges.
In January, the Japan Iron and Steel Federation submitted a request for “Import Trade Measures Request” to the Japanese government, emphasizing the urgent need for stronger monitoring and protective measures against unfair imports.
Growing risks of circumvention practices
Countries worldwide face tactics designed to bypass antidumping tariffs, including:
- Third-country circumvention: Processing steel in a different country to avoid tariffs.
- Minor modification circumvention: Making slight product changes before export to evade duties.
Japan recently launched antidumping investigations into nickel-based stainless cold-rolled steel sheets and hot-dip galvanized steel sheets. However, industry leaders fear that even if duties are imposed, circumvention practices will weaken their effectiveness.
Industry’s call for action
The Japanese steel industry strongly urges rapid introduction of an anti-circumvention system to enhance the effectiveness of antidumping duties and flexible and proper implementation of the new system once established, ensuring it is used actively, not just symbolically. The associations stress that without these measures, Japan risks losing competitiveness in the global steel market.
