Accusations of unfair trading practices have dominated the steel market in recent years; with China front and center. The US has already implemented hefty duties and tariffs on imported steel products from China following findings that the country had unfairly boosted its local steel companies, making it impossible for American companies to compete.
Last week the World Steel Association held its annual meeting and while unfair trading was a topic of discussion, there were different opinions on the matter. When commenting on all of the recent trade cases, World Steel Director General Edwin Basson referred to it simply as “a period of trade tension at the moment.” The leaders of major steel companies; however, were a lot more vocal with their opinions, claiming that: “cheating” and “protectionism” have become rampant in the steel industry.
The US has been one of the most active countries when it comes to the trade cases, and recently implemented major duties against a few countries, but the steepest duties were imposed on China. When asked if these duties have helped their industry, Nucor CEO John Ferriola told S&P Global Platts that they have “certainly” seen benefits. He added that it was “about time” that action was taken. China, the country that has received the lion’s share of complaints of improper trade practices was quiet when it came to conversations about unfair trading. They were; however, willing to comment on their efforts to trim domestic steel capacity. China Iron & Steel Association Secretary General Liu Zhen Jiang said that he believed China had made “great efforts in that regard”.
Meanwhile, the leaders of Europe’s biggest steel companies are turning up the pressure on the government to help the region’s ailing steel companies. Leaders from companies including Tata, ArcelorMittal, ThyssenKrupp and Voestalpine, have told the government that 320,000 jobs in the European steel industry are at risk unless action is taken. Steelmakers across Europe have run into major struggles with the flood of cheap steel products from China and now 58 steel leaders are requesting that EU leadership revisits China’s market economy status. They would like the EU to implement strict duties on Chinese steel products, like the US has.
A coordinated action around the globe, targeting cheap steel products could provide a significant fundamental adjustment to the global steel sector.
SOurce: Economic Calender