Metal Products News
- Steel mills may counter U.S. action
Date: 9-Aug-2007 Sources: (Shenzhen Daily)
THE China Iron and Steel Association, which represents domestic steelmakers, may counter any measures taken by U.S. rivals who accuse the Chinese Government of providing the steel industry in the country with more than US$52 billion in subsidies.
The United States and China should seek negotiations on the dispute and any measures violating World Trade Organization rules would be countered, the industry group said on its Web site yesterday, without giving details.
Six North American steel producers, including Ipsco Inc., have filed petitions with the U.S. Government, requesting duties on imports of welded standard pipes from China, which is the world's largest steel producer. A July 30 report prepared by the U.S. industry claimed subsidies helped Chinese rivals raise capacity and double exports to the United States last year.
'The report seriously lacks evidence,'' the association said. 'We urge both sides to negotiate to resolve the dispute, and at the same time, we won't give up on legal means to protect our industry's rights.''
Other countries, including the United States, subsidize their industries, the association said. Rising demand and prices are driving Chinese steel exports, rather than government incentives, as global demand rose at an average annual rate of 7 percent in the past five years, it said.
Two days of talks on the steel trade between China and the United States ended in Washington on Aug. 3, Custeel.com said yesterday. The talks were attended by government officials from each side, trading groups and steelmakers including Arcelor Mittal, Baosteel Group Corp. and U.S. Steel Corp., said Custeel.com, which is funded by China's top 14 steelmakers.
Domestic mills funded 82 percent of the investments they made in the first half of the year on their own, with the balance coming from bank loans or foreign capital, the association said.
Still, the association said it was appropriate to subsidize efforts to help shut obsolete mills and encourage technical improvement to save energy and protect the environment.
China has cut tax rebates this year on steel shipments as the government tries to rein in a record trade surplus. Steel exports may rise 20 percent this year, the slowest pace in five years, the association said July 30.
Incentives by China's government to steelmakers include US$17.3 billion in loans and credits and about US$18.6 billion in equity, according to the July report prepared by U.S. law firm Wiley Rein LLP for industry groups including the American Iron and Steel Institute. U.S. steel imports surged to a record 45 million tons last year.
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