Japan, South Korea Wary Chinese Steel Oversupply

Japanese and South Korean government and steel industry delegations held 7th talks on Thursday in Tokyo. They agreed to seek potential 3 way talk with China to focus on potential over capacity and oversupply of Chinese steel industry. Japanese and South Korean delegations showed deep concern for potential trade conflict between China and importing countries including South Korea, USA and European nations. They also agreed to seek China should enforce the scraping old and environmental damaging facilities in China. Japanese and South Korean delegations reported favorable condition of the steel industries so far. However, they agreed the potential negative factor for the industries including slower US economy, higher raw materials cost and higher won rate along with China issue. They also shared the concern on Chinese major expansion in stainless steel production. South Korean delegation reported Chinese import impacts on South Korean steel industry, especially for H-beam, concrete reinforcing steel bar and plate. South Korea informed to Japan that South Korea and China discussed China issue, potential cooperation for iron ore negotiation and international merger and acquisition at the talk on December 5. Japan said South Korea should talk with other Chinese departments including National Development and Reform Commission and State-owned Assets Supervision and Administration Commission of the State Council though South Korea has regular talk with Ministry of Commerce of China.