CISA: US Launches Steel Import Investigation

On the 26th, the spokesperson of the China Iron and Steel Association delivered a statement regarding the US side's launch of an investigation into imports of steel. The statement noted that China's iron and steel industry holds that this move by the US sends a protectionist signal to the international community, which is inconsistent with the principle of fair trade, and China's iron and steel industry will keep a close watch on this development.

The China Iron and Steel Association and China's iron and steel industry have noted that US President Donald Trump signed an executive memorandum on April 20, requiring the US Department of Commerce to immediately launch an investigation into whether steel imports should be blocked on the grounds of harming national security, and stated that the investigation is not targeted at China. Even so, China's iron and steel industry holds that this move by the US sends a protectionist signal to the international community, which is inconsistent with the principle of fair trade, and China's iron and steel industry will keep a close watch on this development.

The United States is both a major steel-consuming country and one of the largest steel-importing countries in the world. According to US statistics, in 2016, the US imported 29.96 million tons of steel from across the globe, a year-on-year decrease of 14.8%, with a total value of 22.3 billion US dollars, a year-on-year decrease of 26.4%. This has further increased the pressure on the international steel market.

The spokesperson of the China Iron and Steel Association stated that China's steel exports to the US are very limited, and by no means affect the security of the US steel industry. The main sources of steel imports to the US are other countries rather than China. According to Chinese statistics, in 2016, China exported 1.17 million tons of steel to the US, accounting for 1% of China's total steel exports, with a value of 1.7 billion US dollars, accounting for 3% of China's total steel export value. According to US statistics, in 2016, the US imported 789,000 tons of steel from China, accounting for 2.6% of the US's total steel imports, with a value of 910 million US dollars, accounting for 4.1% of the US's total steel import value.

The spokesperson of the China Iron and Steel Association said that in fact, both China and the United States are facing the problem of global steel overcapacity. As a major country in steel production, consumption and trade, China has already taken practical measures to cut overcapacity. In 2016, the steel industry cut over 65 million tons of capacity. In 2017, China will continue to cut steel overcapacity, and vigorously promote the structural adjustment, transformation and upgrading of the iron and steel industry. It is hoped that the US side will also move in the same direction, make more efforts in adjusting the steel industry structure, eliminating backward production capacity, and improving the modernization level of the industry, give play to the influence and role of the US iron and steel industry, and promote the healthy development of the international iron and steel industry.