Steel Trade Conflicts Emerging in Asia

In Asia, steel trade conflicts are emerging. China Steel Corporation (CSC), Taiwanese largest steel maker, started preparation for antidumping (AD) filing against Asian four countries including China and India. Hyundai Steel of South Korea eyes countermeasures against Japanese steel products. Malaysia government started preliminary survey for safe guard on hot rolled steel sheet. Indonesian government is advancing AD survey against cold rolled steel sheet. Steel export is increasing in Asia when steel makers in China, South Korea and Taiwan have increased their output capacities.

Chinese export of steel products increased by 3.2% to 24.33 million tonnnes for January-June 2011 from the corresponding period of 2010. The export kept above 4 million tonnes for 4 consecutive months until June. Chinese crude steel output represents record high level at 700 million tonnes per year though Chinese domestic steel demand growth slows down. Thus the export keeps high level.

Ministry of Industry & Information Technology of China forecasts Chinese steel export totals 45 million tonnes in 2011. The export is estimated to slow down to 20-25 million tonnes in the second half year along slight decrease of crude steel production. However, the Ministry forecasts outflow of steel export continues. The Ministry is cautious about trade conflict between the U.S.A., Europe and Southeast Asian counties.

CSC, Hyundai Steel, Malaysian and Indonesian governments are also investigating AD cases against Japanese steel products. Japanese steel export decreased by 2.2% year-on-year to 21.364 million tonnes for January-June 2011. Japanese steel industry person said the export temporarily increased since domestic demand declined after Japan Earthquake. Japanese integrated steel makers are likely to increase material supply largely to car industry in the last half of fiscal 2011 (October-March). Steel supply may tighten. At the same time, strong yen trend forces Japanese steel makers to review their export plans.