International Steel Mills

Chinese Steel Mills to Limit Future Steel Exports to USA?

Written by John Packard


Steel Market Update has learned that the U.S. government has sent a letter to the Chinese central government regarding the exports of steel out of the Chinese mills and the harmful impact those exports are having on the U.S. steel industry.

We are learning that the Chinese government has advised the Chinese steel mills of the concerns of the U.S. government (and steel mills) and we are hearing that the government is considering removing tax rebates on certain steel products in order to assist in limiting future exports.

In the meantime, we are learning of a possible meeting between the large trading companies/mill offices of the larger Chinese steel mills here in the United States. SMU was able to confirm that there are discussions between the Chinese mills from one of our good trading sources close to the mills in China.

There are a number of options that the Chinese mills could consider including a self imposed allocation system as well as potentially not offering/confirming any new orders with shipment dates after May 31, 2015.

Our source is advising us that the discussions are on-going and we may learn more about the results of these discussions as early as tomorrow (Friday, March 20th).

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