China steelmakers will take steps to avert trade frictions

China steelmakers will take steps to avert trade frictions - trade assn

	Published : Wed, 11 Apr 2007 07:40 By : Agencies Print this Story

SHANGHAI (XFN-ASIA) - China's iron and steel companies will do their part to help ease trade frictions, an official with the main industry association said, adding that the industry will police itself for practices that may invite retaliation by trading partners.

'The iron and steel enterprises shall strengthen self-discipline, strictly observe WTO rules and actively respond to trade disputes,' Qi Xiangdong, deputy secretary general and chief analyst at the China Iron and Steel Association said at a forum here.

In the last 10 months, nine countries and regions have moved forward with 12 anti-dumping cases against China involving more than 10 types of steel products, according to China Customs.

Some countries have accused China of unfairly subsidizing certain companies, giving them an unfair advantage and facilitating cases of dumping.

In 2006, China imported 18.51 mln tons of steel products while exports rose 109.6 pct to 43.01 mln tons.

CISA's Qi said combined net exports of steel and billet are expected to fall by about 10 mln tons in 2007, adding that if exports of steel do not slow, the government will impose stricter policies against exports.

Qi did not elaborate.

China has tried to control the export of iron and steel products with tighter policy controls but a production glut and higher prices abroad have helped fuel expansion.

Chen Haoran, chairman of the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCM), said during at the forum that China will try to implement systems to reduce trade problems and avoid the appearance of passivity.

Chen said putting in place a wide-ranging export-license management system and further policy controls will help resolve the problem.

But Huang Guohua, the director of the Department of Comprehensive Statistics of China Customs, said at the same event that the growing international demand for and dependence on Chinese iron and steel will increase.

'Although trade frictions (resulting from) the export of Chinese iron and steel products will increase, (Chinese exports) will continue to develop,' he said.

In March 2006, Indonesia's Krakatau Steel Co put forward an anti-dumping investigation application again hot-rolled coil produced in China, involving several Chinese steelmakers including Baosteel and Wuhan Iron and Steel (Group) Corp.

In June, Australia conducted an anti-dumping investigation into Chinese hollow steel tube.

And recently, the US, EU and South Korea have issued warnings about the country's steel product exports.

CISA said yesterday that export tax rebates on stainless steel products and some specialty steel, including cold-rolled steel coils and silicon-manganese steel wire, will be reduced to five pct.

China's General Administration of Customs said earlier that the country's trade surplus in the first quarter was 46.44 bln usd, double the 23.31 bln recorded a year earlier.

Steel was the fastest growing export category in the first quarter, up 154.3 pct year-on-year at 3.6 bln usd.

China's overall trade surplus was 177.47 bln usd in 2006.

China steelmakers will take steps to avert trade frictions - trade assn