On April 8, the European Commission announced the levying of an up to 24.2% temporary anti-dumping tax on seamless steel tubes made in China. US steel tube makers have submitted an application to the Department of Commerce and International Trade Commission, requiring an anti-dumping and anti-subsidy investigation of China-made oil well pipes. This case, involving $2.7 billion, is by far the largest anti-dumping appeal against China by the US. A China Ministry of Commerce spokesman said that due to its large influence on Chinese steel exports, the government was paying close attention to the case. In future, the Chinese steel industry may face frequent law suits.

China’s domestic steel prices have been dropping for ten straight weeks. And now, China’s steel industry is facing anti-dumping threats from the US and Europe.

An April 17 report from mysteel.com, a Chinese steel information organ, shows the composite index for domestic steel prices at 119.9 points, a decrease of 1.2% from the previous week, 2.8% from the previous month, and 41.2% from the previous year.

Price trends for different steel products differ. Prices for construction steels are going up, while those for some sheet steels are steadily decreasing due to supply surpluses.

Counstruction steel prices rose over the last week. On April 17, the average price for 25 mm thread steel in 10 big cities nationwide was 3,388 yuan per ton, 80 yuan higher than on April 10, while the average price for 6.5mm high-speed roller steel sheet reached 3,357 yuan per ton, up 93 yuan per ton over April 10.

For other sheet steels the story is different. Current average prices for hot rolled coiled sheet and medium plate have run lower than average prices of thread steel and high-speed roller sheet steel, in spite of higher costs. According to Duan Zhibai, vice-chairman of the Chamber of Steel Commerce, Shanghai Federation of Industry & Commerce, hot rolled coiled sheet produced in Russia and other countries is flooding into China, with prices down to $380 per ton, lower than domestic prices. And with serious production surpluses, prices are expected to fall further in May.

Zhang Foquan, general manager of Shanghai Tiemin Steel Market, says prices for thread steel and wire are on the rebound. “Recently a lot of building steel products have been transported to Sichuan (site of last year’s massive earthquake), and steel makers’ inventory is decreasing. Also, infrastructure construction projects will be launched in April, with more in May and June, such as the Shanghai-Hangzhou express railway, leading to high demand for thread steel and wire.”

According to a mysteel.com survey among traders in 15 big cities, including Shanghai, Beijing, and Guangzhou, hot rolled coiled sheet prices look to continue to decline, while prices for thread steel are expected to rise.

Find More Other News : Iron Ore, Mineral Exploration