What is the solution for Anti dumping coated steel coil in US market ?
What is the anti dumping ?
Dumping is said to occur when the goods are exported by a country to another country at a price lower than its normal value. This is an unfair trade practice which can have a distortive effect on international trade. Anti dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. Thus, the purpose of anti dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade. The use of anti dumping measure as an instrument of fair competition is permitted by the WTO. In fact, anti dumping is an instrument for ensuring fair trade and is not a measure of protection per se for the domestic industry. It provides relief to the domestic industry against the injury caused by dumping.
What happen is in US market right now?
a. The steel is slow down
China mil is exporting to US market around 2Milion tons Mts/year. What will happen if they are applied anti dumping ? So they need to down the price to push the US customers buying their product and the China goverment support exporting by currency so once again the price is down. BUT this is very risk for US mil steel because what happen AD apply while the product are shipping? US mil steel will be charge import tax around 100%.
b. The mil steel in US is worry about the supplier when Anti dumping apply.
Many mil steel in US are worry about the anti dumping apply, they do not have any suppliers to import. And the market will be explosive the price.
What is the solution for US mil steel?
a) Market Analysis/trend as per perspective’s view
Since the coated products AD case has filed against China, India, Italy, Taiwan, and Korea, traders or end-users
in US have stretched its buying sources competitively throughout the globe. As a result, the below countries
have been identified as a possible new source as followings;
Vietnam – There are 8 Re-Rollers in the country and most of US traders are coming in and pretty sure all of the re-rollers are busy to accommodate or provide them some hospitalities as well in hope of
expanding its market share in the US. ( I will explain it more in depth of Vietnam mills’ Pros & Cons
Brazil – Not the best option as of yet for its delivery issue. Price are competitive with a bit of lack of its quality.
Japan – Although there is possibility to import but there is very few selected mills that are willing to expand its products to the US market. Quality is there but price is not competitive. Look out the
Japanese currency situation which is pretty weak but how long it will be sustaining it….
b) What is the best solution for US mill steel when Anti dumping applying,
As the analysis you can give the decision on yourself. If you want to know more about Vietnam steel market I will update more information in this blog or you can contact directly to me as below: