Japan has initiated an anti-dumping investigation on certain steel products from China and South Korea in order to protect domestic producers from the impact of a new wave of steel imports. The Japanese Ministry of Economy, Trade and Industry and the Ministry of Finance announced on Wednesday that the investigation will focus on the importation of hot-dipped galvanized coils, sheets, and strips, with an expected completion within one year.
The investigation was triggered by applications submitted by major Japanese steel companies, including Nippon Steel Corporation, Nippon Steel Coated Sheet Corporation, Kobe Steel, and Yodogawa Steel, requesting anti-dumping duties on hot-dipped galvanized steel coils and plates originating from South Korea and the People’s Republic of China. The ministries reviewed the applications in accordance with WTO agreements and relevant domestic laws and regulations, concluding that there was sufficient evidence to initiate the investigation.
Due to a sluggish real estate market affecting domestic demand, China, as the world’s largest steel producer, has seen a surge in steel exports this year. This has not only dragged down prices but also put pressure on global steel producers.
The Japanese government will determine whether the investigated products are being imported into Japan at dumped prices and whether such imports pose a threat or cause actual harm to domestic industries. Based on the investigation results and in accordance with WTO agreements and relevant domestic laws and regulations, Japan will decide whether to impose anti-dumping duties on the products under scrutiny.
The Japanese Ministry of Economy, Trade and Industry and the Ministry of Finance will provide an opportunity for all parties, including suppliers from China and South Korea, to present evidence.
Last month, Japan launched an anti-dumping investigation on nickel-containing stainless steel coils, sheets, and strips from China and Taiwan.
In recent years, as China’s economic growth engine (real estate) has cooled, the Chinese government has turned its focus to supporting the manufacturing sector as an alternative driver of economic growth. However, weak domestic demand in China has exacerbated the issue of overcapacity. To address this, China has begun looking to foreign markets.
The United States and the European Union have both raised alarms about China’s overcapacity issues. Following an anti-subsidy investigation into Chinese electric cars by the EU, the EU has started imposing anti-subsidy duties on Chinese automakers.
Several countries, including Japan, have criticized Chinese companies for receiving government subsidies, producing excess steel, and then exporting at low prices, leading to the deterioration of the global market conditions.
Trump has increased tariffs on imported steel and aluminum to 50% to further protect relevant industries in the United States.