Taiwan to investigate Chinese steel imports

Source: PLATTS

Taiwan has launched an investigation into steel imports from China, the Ministry of Finance said.

“This is done in a bid for the US to add Taiwan to the exclusion list of the Section 232’s 25% tariff,” a source from a Taiwanese mill said.

Chinese products being investigated by Taiwan include certain galvanized and zinc alloy flat-rolled steel products, carbon steel plates, cold-rolled stainless steel, hot-rolled stainless steel, and specific carbon steels products produced from mainland China.

Out of the five steel products, anti-dumping duties are currently levied on certain galvanized and zinc alloy flat-rolled steel products, carbon steel plates, and stainless steel cold-rolled steel products, the Ministry of Finance said.

“It is heard that Taiwanese fabricators and re-rollers import Chinese steel into Taiwan, process it, and then re-export it to the US among other destinations,” a source from a Taiwanese mill said.

“If this [happens], it might not affect the mills directly as most of the mills are selling their products domestically and not much to the US. However, it would then mean the fabricators might be pressured to buy more from local mills instead if they wish to continue selling,” the source said.

The US imposed a 25% tariff on steel imports which came into effect March 23, as per Section 232 of the Trade Expansion Act of 1962.

Taiwan, which has not been put on the list of countries excluded from the tariff, exported 867,029 mt of steel to the US in 2017, according to Ministry of Finance data.

According to the US Department of Commerce, Taiwan ranks ninth in volume terms in the list of steel import origins. US imports from Taiwan were predominately flat products, with Taiwan ranking fifth in the sources of origin for flats, and ranking first in the list of stainless product origin, at 126,000 mt.

The countries excluded from the 25% tariff are Argentina, Australia, Brazil, Canada, Mexico, South Korea and EU member countries. However, the exclusion will expire on May 1 and will be subject to further negotiations for their continuation.

Source: PLATTS