Speaking at American Metal Market's third China Summit in Pentagon City, USA on September 17, David A. Hartquist, the general counsel of Specialty Steel Industry of North America (SSINA), said China is a threat to the economic stability of the international stainless steel market and to the financial viability of the US stainless steel producers.
According to Hartquist, the Chinese government is actively promoting the steel, stainless steel and other "pillar industries" by providing various financial supports.
Among the major supports provided by the Chinese government to the stainless steel industry in recent years, Hartquist listed TISCO's $241 million loan transfer to obtain equity in 1999, Baosteel's similar actions for $241 million in Pudong Steel and $96 million in Baosteel First Steel Co., and also the government's loan extensions for TISCO and Baosteel in order to help them to expand their production capacity.
Also in his speech, Hartquist called the US government to initiate a CVD case against Chinese stainless steel.
China's stainless sheet and strip exports to the US increased by 1,200 percent to nearly 120,000 mt in three years from 2003 to 2006.
On the other hand, the Chinese government is refusing such financial aid and subsidy claims at every opportunity. Currently, China's stainless steel industry is facing the problem of oversupply. Recently, Wu Jianchang, deputy chairman of the China Iron and Steel Association (CISA) said investments in the stainless steel industry would slow down as there is sufficient capacity available.