Faced with two fronts, the China’s steel industry perhaps could be persuaded to adequately alter its production and trading policy. The imposition of EU tariffs on Chinese steel could complicate matters if not significantly alter the face of the industry.
On Tuesday, China’s steel industry urged its central leadership to ensure that domestic players who are seeking to expand are not affected by the imposition of U.S. tariffs; their plea comes in the wake of an announcement of a probe by the European Union on imported steel.
U.S. tariffs of 25% on steel and 10% of on aluminum have come into effect last Friday.
China Iron & Steel Association (CISA) stated the EU probe will complicate its response to U.S. tariffs.
“We appealed to the Chinese government to take relevant measures if necessary and strictly prevent the surge of imports from affecting the Chinese market,” said CISA.
As per data from the General Administration of Customs in 2017 China exported 75.43 million tonnes of steel products while importing only 13.3 million tonnes of steel products.
On Monday, in a statement which underscores the impact the U.S. tariffs have had on its steel and aluminum industry, the Chinese commerce ministry stated that China is willing to strengthen its communications and coordination with EU in its probe of Chinese exports of steel while adding that protective measures would only make the situation worse.