Posted on 04 Mar 2016
China Steel said that it has adjusted its sales strategy by shipping more cold-rolled steel products to the U.S. market to take advantage of the heavy financial punishment its Chinese rivals now face.
On March 1, the U.S. Department of Commerce issued a preliminary ruling, slapping a 265.79 percent tariff against Chinese cold-rolled steel flat product makers.
The U.S. has also imposed anti-dumping tariffs ranging between 4.53 percent and 71.35 percent against cold-rolled steel flat product suppliers from South Korea, Brazil, India, Russia, the United Kingdom and Japan.
In addition, the U.S. Department of Commerce has imposed an additional 280 percent in anti-government subsidy tariffs on Chinese cold-rolled steel makers. Along with the anti-dumping duty, Chinese firms now face a stiff tariff burden of 545.79 percent.
China Steel said that its subsidiary — CSC Sumikin Vietnam Joint Stock Company (CSVC) — will seize the opportunity to ship more cold-rolled steel products to the U.S. market. CSVC is a joint venture between China Steel and Japan's Sumitomo Metal Industries Ltd.
In the past, the U.S. cold-rolled steel market had been disrupted by dumping practices carried out by foreign suppliers such as China, but the anti-dumping tariffs imposed against China and the other six countries are expected to help the U.S. steel market restore order, which will boost product prices, China Steel said.
China Steel said that the move by the U.S. to slap heavy tariffs against Chinese cold-rolled product imports is expected to prompt other Taiwanese firms, such as Yieh Phui Enterprise Co. and Sheng Yu Steel Corp. to use more of China Steel's hot-rolled steel to make cold-rolled steel products for the U.S. market.
As a result, China Steel said, its hot-rolled steel product sales could increase accordingly.
In the wake of the stiff tariffs against Chinese steel makers, the steel sub-index in the Taiwan Stock Exchange closed up 3.49 percent on Thursday.
