China continues to impose anti-dumping duties on certain steel imports

According to the investigation results of the Ministry of Commerce, if the anti-dumping measures are terminated, the dumping of imported stainless steel billets and hot-rolled plates/coils from the above-mentioned countries and regions on China may continue or reoccur, and the damage caused to related domestic industries may also continue or reoccur. Based on this, the Tariff Commission of the State Council decided to continue the anti-dumping measures. ​

The scope of products subject to anti-dumping duties this time is consistent with the provisions of Announcement No. 31 of 2019, and related products under tariff number 72223000 are covered. For POSCO Co., Ltd. of South Korea, it will continue to implement the price commitment in 2019, and anti-dumping duties will be imposed if it violates the commitment. ​

From July 1, import operators will pay the corresponding anti-dumping duties to the Chinese Customs when importing related products. The value-added tax at the import stage will be levied on the basis of the taxable price determined by the customs plus the tariff and anti-dumping duties. The implementation of this policy will have a certain impact on the trade pattern of the international steel market, especially for steel exporters in the above-mentioned countries and regions, as well as downstream industries that rely on imported steel.​

In addition, the global steel market has recently shown a complex situation. According to market monitoring, iron ore prices are driven by the rise in futures, and traders are more willing to support prices. On July 10, the Platts 62% iron ore index reached US$98.1/dry ton, up US$2.9 from the previous trading day. At the same time, the United States announced a 50% tariff on all steel imports, further exacerbating the uncertainty in the global long product market. ​

In China, scrap steel market prices generally rose, and 64 steel mills across the country raised scrap steel purchase prices. In the coke market, due to the rise in raw coal prices, coke companies in many places plan to raise coke prices by 70-95 yuan/ton from July 14. The alloy market showed differentiation, and varieties such as molybdenum iron remained strong. ​

Industry analysts believe that the global steel market may remain structurally weak in July and August, and it is expected that no obvious driving factors will change this pattern before September. With the implementation of China's anti-dumping policy, the domestic steel market is expected to be protected to a certain extent, reducing the impact of external dumped products and promoting the healthy development of the industry. But at the same time, related companies also need to pay close attention to international market trends to cope with possible new changes.