Trade barriers hit China’s steel exports and encountered “encirclement and recovery”

In the first half of the year, China's iron and steel products suffered a total of five anti-dumping investigations. Along with mechanical products, it became China's second-most trade friction product; within four months, Wuhan Iron and Steel was even confronted with four anti-dumping investigations.

Since the beginning of this year, under the "siege" of international trade protectionism, China's steel exports have struggled. Following the strong growth at the beginning of the year, domestic steel exports have been “dive” for three consecutive months since March, with a more significant drop in June until the July suspension.

According to the latest statistics released by the China Iron and Steel Association, in July, China exported 4.44 million tons of steel, an increase of 150,000 tons, an increase of 3.5%; a year-on-year decrease of 2.4%, a decrease of 21.34 percentage points from June; After the net export of crude steel converted to 3.36 million tons, an increase of 100,000 tons. From January to July this year, China's total steel exports were 28.77 million tons, an increase of only 2.3% year-on-year.

The industry generally believes that in the international market is still weak demand, the recent rebound in steel exports may be "short-lived", especially considering the adverse effects of the appreciation of the *** and the escalation of international trade frictions, China's steel exports may further decline in the second half, The outlook for long-term steel exports is not optimistic.

According to the monitoring data of the China National Security Center, the exchange rate of *** against the U.S. dollar fell to 6.3972 on August 12th. Since entering the “6.3 era”, the exchange rate of *** has been updated for five consecutive trading days. Since the record high, August 16 *** exchange rate against the US dollar rose slightly by 25 basis points to 6.3925 yuan. Although the middle price of *** against the US dollar on August 17 was lower than the previous trading day, on August 18th, the *** exchange rate against the US dollar was reported at 6.3942, a 54 basis point higher than the previous trading day.

Affected by this, China's steel export quotation has recently risen and its export competitiveness has been further weakened. According to the September export quotation issued by mainstream domestic steel mills, the offshore price of boron-containing hot coils for Sha Steel was 695-700 US dollars, which was increased by US$10-15 over the previous month; Laigang’s rebar, hot coil, medium plate, and cold coil in September. The overall quotation for the 770 and large and small sections of steel increased by about US$20 from the previous month.

Another industry personage believes that the recent US Vice President Biden’s visit to China will once again exert pressure on the appreciation of the ***. It is expected that the exchange rate of the *** exchange rate will continue to maintain a strong momentum of appreciation.

To this end, China Steel Association recently issued early warning information that the recent continuous appreciation of the ***, reducing the export revenue of steel products, is not conducive to the expansion of exports of steel companies.

Exports encounter "10 ambush"

According to the statistics of the relevant business departments, this year Wu Gang has been trapped in the quagmire of international trade protectionism and has so far been subjected to four anti-dumping investigations involving a total amount of US$51.92 million. On February 12, Russia, Kazakhstan, and Belarus conducted anti-dumping investigations on the color steel produced in China. Among them, the amount involved in Wuhan Iron and Steel was US$2.34 million. On April 18th, Brazil decided that it should originate from China, Australia, Mexico, and South Korea. The anti-dumping investigations were carried out on coated plates from five countries in India. Among them, the amount involved in Wugang was 49.97 million U.S. dollars, which accounted for more than 16% of the total amount of cases involved. It was the largest enterprise involved in the case in China.

On June 24, the Indonesian Anti-Dumping Committee launched an anti-dumping investigation against cold rolled coils originating in China, Japan, and South Korea. The amount of USD involved in the case was USD 1.6 million; on July 8, the Ministry of Commerce of Thailand announced the application of the Chinese coiled coils. Boron steel was investigated for anti-dumping. The amount involved in Wuhan Iron and Steel Company reached 1.98 million U.S. dollars.

The relevant person in charge of Wuhan Iron and Steel International Trade Co., Ltd. said that four anti-dumping investigations within seven months were the period in which Wuhan Iron & Steel had the most intensive trade frictions.

In addition to Wuhan Iron and Steel, Anshan Iron and Steel, Baosteel and some private steel companies also encountered interruptions to foreign trade barriers. According to statistics from the China Trade Relief Information Network, in the first half of this year, China’s steel products suffered a total of 5 anti-dumping investigations, ranking second with mechanical products. The products involved were plate materials, including color steel, coated steel, and CRC. board.

The reporter found that of the five anti-dumping cases launched by foreign steel products in China this year, the initiators of two cases were Brazil and Indonesia, and the initiators of the remaining three cases were Russia, Kazakhstan, and Belarus, respectively, and transition economies gradually Become the protagonist of anti-dumping on steel products in China.

In addition, developing countries such as South Korea, Thailand, and Malaysia have also joined the legion of blocking Chinese steel exports.

As the largest target country for China’s steel exports, the South Korean side recently stated that the rapid growth of Chinese steel exports to South Korea has already led to an increase in the burden on South Korean steel mills. China and South Korea are currently negotiating new solutions and may cancel export tax rebates for Korean steel exports. Langqing Steel Network analyst Wang Guoqing said that during the first half of this year, China exported a total of 5.61 million tons of steel to South Korea, accounting for 23% of China's total steel exports. If South Korea takes further restrictions, China's steel exports will be greatly affected.

The Ministry of Commerce of Thailand announced recently that it initiated anti-dumping investigations on China's exports of boron-containing hot coils, cold coils, and galvanized and aluminized sheets. At the request of the domestic steel company, the Indonesian anti-dumping committee also decided to conduct an anti-dumping investigation on cold rolled coils produced in China. According to statistics from China United Iron and Steel Network, the planned export volume of 17 major coil rolling mills in China in August was 173,000 tons, which was 50,000 tons less than the previous month, and the chain's decline rate was 12.5%.

"When it's time to shoot," he said.

Luo Bingsheng, former vice president of the China Steel Association, once said that dialogue and consultation are the best ways for Chinese steel companies to avoid trade frictions. On this basis, relying fully on the steady growth of the domestic market and implementing export diversification strategies is also a response to trade frictions. The important way.

Of course, if trade frictions are inevitable, domestic iron and steel enterprises, in addition to actively responding to the complaints, must be actively pursuing change, optimizing their product structure, and winning with cleverness.

"For domestic export companies, the adjustment of product structure should aim at the situation of the iron and steel industry of export destinations, identify their weaknesses and blank areas, and mainly export exclusive products, and provide no excuse for the other party to initiate anti-dumping." An insider Suggest.

Taking Wuhan Iron and Steel as an example, the main attack on high value-added products has become the main measure for enterprises to break through international trade barriers. In the first half of this year, the export ratio of WISCO's low-value-added hot-rolled products has dropped from 71% last year to 39%, while that of high-value-added cold-rolled silicon steel products has risen to 61%.

In addition, the high-end differentiation strategy is also a powerful tool for Wuhan Iron and Steel to respond to foreign anti-dumping. This year, WISCO high-grade steel casing steel K55, galvanized automotive steel and other products have successfully entered the overseas market; independently developed 300 tons of suede color coating products high-profile into the Ukrainian high-end color coating market, and long-term monopoly of the local market foreign competition Opponents are "antagonistic."

What's more, Sai Wu lost his horse and he knew he was not happy. By actively responding to foreign anti-dumping investigations, domestic iron and steel enterprises can take this opportunity to familiarize themselves with WTO rules and international trade practices and make full use of legal weapons to protect their legitimate rights and interests. In recent years, large iron and steel companies such as Wuhan Iron and Steel and Baosteel have also repeatedly made gains in foreign anti-dumping "defending war."

In 2008, Indonesia's anti-dumping case against hot-rolled coils in China was finally settled by WISCO's zero-tax export; in 2009, the one-and-a-half-year anti-dumping case against Russia for color-plating in China was also won by Wuhan Iron and Steel, and Russia’s Measures to end anti-dumping investigations. Earlier this year, Baosteel also achieved a dumping rate of zero in the United States' investigation of China's "double reverse" drill pipe products.