Stainless Steel Exports Will Face A Tough Battle

Since 2024, the export situation of domestic stainless steel has been good, 

with exports increasing by 23.3% year-on-year to 3.263 million tons in the first eight months. 

Exports reached a record high of 488,000 tons in August. 

Amid the positive export data, the global stainless steel trade barriers have been expanding this year.

 In addition to anti-dumping/countervailing duties, there have been cases of increased tariffs, and we will explain the events and impacts of tariff adjustments since 2024.

Turkey Flat-rolled Stainless Steel Import Duty Increase

On December 31, 2023, Turkey announced an increase in import duties on certain products, including cold-rolled stainless steel coil, which was raised from 8% in 2023 to 12%, and other stainless steel sheet and plate was reduced from 2% in 2023 to 0%, while the hot-rolled stainless steel coil duty rate remained unchanged (the duty rate for hot-rolled plate and hot-rolled thick coil with a thickness of more than 10mm was 2%, and the duty rate for hot-rolled coil with a thickness of 10mm or less was 0%). This decision came into effect on January 1, 2024.

In addition, on June 28, 2024, the Turkish Ministry of Commerce issued a statement announcing the initiation of an anti-dumping investigation into the import of cold-rolled stainless steel from China and Indonesia, following an application by domestic manufacturer Posco Assan TST Celik Sanayi Anonim Şirketi and support from Trinox Metal Sanayi ve Ticaret Anonim Şirketi.

In 2024, Turkey has become the second largest exporter of domestic stainless steel cold-rolled products. According to Mysteel statistics, from January to August 2024, about 204,000 tons of domestic stainless steel cold-rolled products were exported to Turkey, accounting for about 11% of the total domestic stainless steel cold-rolled exports. This is an increase of 88,000 tons compared to the same period last year, an increase of 75.7%. Once the tariffs are imposed, the impact on domestic stainless steel exports will be relatively large.

Some pipe products in Mexico have had their tariffs increased

On April 22, 2024, Mexico announced the modification of its General Import and Export Tariff Law tariffs, with 544 HS codes subject to a temporary import tariff of 5%-50%.

The temporary measure is valid from April 23, 2024 to April 22, 2026. The law aims to protect Mexico's fragile domestic industrial sectors from the destructive trade practices and support the growth of the local market.

It involves stainless steel cold-rolled coil, seamless pipes, welded pipes and other pipe fittings, of which the import tariff for stainless steel cold-rolled coil remains unchanged at 25%, while the import tariff for some seamless pipes is raised from 25% to 35%, the import tariff for welded pipes remains unchanged at 25%, and the import tariff for stainless steel threaded elbow fittings and bending pipe joints is raised from 25% to 35%.

According to Mysteel data statistics, in 2023, the volume of stainless steel products involved was about 12,800 tons. In the first eight months of 2024, the volume was only 8,560 tons, an increase of 2,020 tons, an increase of 31.35%. The volume is relatively small, so the impact on domestic stainless steel exports can be ignored.

The United States has imposed additional tariffs on Chinese stainless steel

On May 22, 2024, the US Trade Representative's Office (USTR) issued a notice stating that a series of measures to impose substantial tariffs on Chinese imports of electric vehicles and their batteries, medical products, key minerals

According to statistics, from January to August 2024, the amount of stainless steel exported from China to the United States was about 69,200 tons, an increase of 10,000 tons from the same period last year, an increase of 17.4%. The export volume accounts for about 2.1% of China's total exports. Due to the high trade barriers, the proportion of exports to this place is relatively low.

According to statistics, in 2023, the amount of stainless steel exported from China to the United States involving this product was about 65,400 tons, accounting for about 1.76% of its total exports. Overall, this measure has limited impact on China's stainless steel exports.

Brazil imposes anti-dumping duties on Chinese stainless steel

Recently, Brazil decided to impose anti-dumping measures on cold-rolled stainless steel sheets of 200 series and 410 produced in China, with a countervailing duty of $629.44 per ton.

The products involved are cold-rolled stainless steel sheets of 200 series and 410 with a thickness of 0.35mm to 4.75mm, with commodity codes of 7219.32.00, 7219.33.00, 7219.34.00, 7219.35.00 and 7220.20.90.

Previously, Brazil only imposed anti-dumping duties on 304 and 430 stainless steel cold-rolled sheets.

According to Mysteel data statistics, in 2024, the amount of cold-rolled stainless steel exported from China to Brazil was about 29,000 tons (accounting for about 1.6% of China's cold-rolled stainless steel exports), an increase of 0.46 tons from the same period last year, an increase of 18.9%. Since the export volume of 200 series and 410 is not large, the impact of expanding the taxation afterward is limited.

Canada imposes a 25% tariff on Chinese stainless steel

Since 2021, the volume of stainless steel exported from China to Canada has increased significantly, rising from an average of less than 2,000 tons per month to over 5,000 tons per month in 2024.

From January to August 2024, the cumulative volume was approximately 45,500 tons, an increase of 15,000 tons over the same period in 2023, an increase of 51.4%. The volume in August was at the second highest historical level, approximately 8,161 tons.

The volume of stainless steel exported from China to Canada is relatively small, only 1%. Therefore, the imposition of a 25% tariff on China's stainless steel exports has had a minimal impact on China's stainless steel exports to Canada.

South Korea's Anti-dumping Investigation into Hot-rolled Steel Imports from China

On September 6, 2024, the Korea Trade Commission issued a notice (Investigation No. 23-2024-7) stating that an anti-dumping investigation has been initiated against hot-rolled stainless steel plates (Stainless Steel Plates) originating in China, with a thickness of ≥ 4.75 millimeters and a width of ≥ 600 millimeters, in response to an application submitted by Korean company DK Corporation on June 28, 2024. The Korean tax numbers of the products involved are 7219.21.1010, 7219.21.1090, 7219.21.9000, 7219.22.1010, 7219.22.1090, and 7219.22.9000.

From September 15, 2021, South Korea will levy anti-dumping duties on Chinese stainless steel coils (stainless steel coils with thickness ≤ 8mm) for three years, of which 23.69%~25.82% will be levied on Chinese Mainland. At the same time, price commitments have been reached with some companies, and anti-dumping duties will not be levied on those companies that have fulfilled their price commitments.

The newly added quantity in this anti-dumping investigation is hot-rolled stainless steel medium and thick plates (under item 721921), which is relatively limited. From January to August 2024, the quantity was only 5300 tons, a year-on-year decrease of 3600 tons, a decrease of 40.5%.

In addition, the Indian Stainless Steel Development Association (ISSDA) has requested the Ministry of Steel to impose a protective surtax on all stainless steel products imported from China, aiming to create a fair competitive environment for domestic industries in the face of a surge in imports. India, as the main domestic exporter of stainless steel, once taxed, has a significant impact on domestic stainless steel exports. From January to August 2024, the domestic export of stainless steel to India amounted to approximately 340000 tons, accounting for about 17% of the total domestic export volume.

The overseas trade barriers to domestic stainless steel are becoming increasingly high and wide. Although some regions' policies have little impact, the accumulation of many regions will not be underestimated.