Chinese steel exports to remain under close scrutiny

Chinese steel exports to remain under close scrutiny

Along with the rapid growth of both steel output and export volume, China will likely face an increase in the number of antidumping lawsuits. According to Chen Haoran, head of China Chamber of Commerce of Metals Minerals and Chemicals Importers and Exporters (CCCMC), the US, EU, and South Korea are closely monitoring China’s steel export. These countries are compiling evidence that suggests China engaged in dumping practices and should therefore be a main focus of trade-protective investigations. The above-mentioned situation resulted from the rapid growth of China’s steel output. In October, China produced 33.1045 million metric tons of finished steel products, a year-on-year increase of 23.65 percent. Daily average output in October reached 1.0679 million metric tons. Through the first ten months, the cumulative output of finished steel products was 301.9169 million metric tons, up 25.65 percent year on year. Such volume within a relatively short period led to an imbalance in domestic supply and demand and caused prices to fall sharply. At present, the price gap of hot rolled products between China and the US is about $250/mt, which has led to an increase in both inquiries and export volume. During the first ten months, China’s cumulative export volume of finished products was 17.15 million metric tons, up 7.01 million metric tons, or 69.1 percent, over the previous year. Based on the daily average output in October, 2005 finished steel output is expected to be 367 million metric tons. Adding in the capacity that is slated to come on stream next year, China’s 2006 finished steel output will likely exceed 400 million metric tons. Since production growth is outpacing that of domestic demand, the international market naturally becomes a venue where China can sell its excess output. South Korea, the US and Europe account for 46 percent of China’s total exports, so it is no coincidence that these countries are leading the way with antidumping investigations. In general, 2006 will be a difficult year for China to export its steel products. SteelOrbis Shanghai See also: US rod mills file antidumping against China, Turkey, Germany EU to extend existing duties on imports of steel ropes & cables