China Iron and Steel Association: The U.S. Initiates an Investigation into Steel Imports.

The spokesperson for the China Iron and Steel Association issued a statement on the 26th regarding the U.S. initiation of an investigation into steel imports. The spokesperson expressed that the Chinese steel industry believes this move by the U.S. conveys a protectionist signal to the international community, contradicting the principles of fair trade. The Chinese steel industry will continue to monitor the situation.

The China Iron and Steel Association, along with the Chinese steel industry, took note of President Trump's signing of an executive memorandum on April 20, instructing the U.S. Department of Commerce to investigate whether steel imports should be restricted on grounds of national security, clarifying that the investigation is not specifically targeting China. However, the Chinese steel industry views this U.S. action as sending a protectionist signal to the international community, inconsistent with the principles of fair trade, and will closely follow the developments.

The United States is both a major consumer of steel and one of the largest steel-importing countries globally. According to U.S. statistics, in 2016, the U.S. imported 29.96 million tons of steel globally, a 14.8% decrease year-on-year, with a total value of $22.3 billion, down 26.4% year-on-year. This has further intensified pressure on the international steel market.

The spokesperson for the China Iron and Steel Association stated that China's steel exports to the U.S. are extremely limited and do not pose a threat to the U.S. steel industry. The primary sources of steel imported by the U.S. are from countries other than China. According to Chinese statistics, in 2016, China exported 1.17 million tons of steel to the U.S., accounting for 1% of China's overall steel exports, with a total value of $1.7 billion, representing 3% of China's total steel export value. According to U.S. statistics, in 2016, the U.S. imported 789,000 tons of steel from China, comprising 2.6% of total U.S. imports, with a total value of $910 million, representing 4.1% of the total value of U.S. steel imports.

The spokesperson for the China Iron and Steel Association emphasized that both China and the U.S. face the global issue of excess steel production capacity. As a major player in steel production, consumption, and trade, China has taken practical measures to address excess capacity, with over 65 million tons of capacity eliminated in 2016. In 2017, efforts will continue to further reduce steel production capacity and promote structural adjustments and the transformation and upgrading of the steel industry. It is hoped that the U.S. will also take similar steps, focusing on adjusting the structure of the steel industry, phasing out outdated capacity, and enhancing the modernization of the industry, leveraging the influence and role of the U.S. steel industry to promote the healthy development of the international steel industry.