(HSV VIETNAM GROUP) – Nippon Steel Corp. and businesses in the industry are lobbying the government to implement protective measures due to concerns that the wave of imports from China will continue to increase.
According to Bloomberg, Nippon Steel Corp. , the world's fourth largest steel producer, believes that the Japanese Government needs to apply anti-dumping taxes on Chinese steel exports to protect the domestic industry.
In a recent interview, Mr. Takahiro Mori, executive vice president of Nippon Steel Corp. said the company and businesses in the industry are lobbying the government to implement protective measures due to concerns that the wave of imports from China will continue to increase.
China's steel exports soared this year to their highest level since 2016, as domestic demand fell due to a prolonged real estate downturn.
The steel industry of other countries around the world is concerned that the local market will become a place to consume China's surplus steel. This has led to a wave of increased trade defense measures against the world's largest steel producer.
Many other countries, including Europe, the US and South Korea, have introduced defensive measures, which means "exports will flow to Japan if it is the only country without similar measures", Mr Mori said.
Steel mills globally, including those in China, are feeling the pressure from the market downturn. The world's largest steelmaker China Baowu Steel Group Corp. earlier this month warned that China's steel industry was in for a "harsh winter". The market situation may be even more difficult than the previous crisis in 2008 and 2015. Nippon Steel is also preparing for an "unprecedented harsh business environment".
Nippon Steel no longer has a joint venture with Baowu subsidiary Baoshan Iron & Steel Co. at the end of last month. The Japanese company will make decisions on other joint ventures it has in China on a case-by-case basis, Mori said, adding that the company's strategy is to expand investments in the US, India and the ASEAN region.
Nippon Steel is currently in the process of acquiring American steel manufacturing company US Steel Corp.
The company believes it can complete the acquisition of US Steel Corp. This $14.1 billion deal became politically sensitive in this year's US presidential race.
“If it weren't for an election year, this deal would have been finalized a long time ago,” Mr. Mori said, adding that he is planning to visit the US and meet with relevant parties next month.
Ha Diem HSV