Nippon Steel proposes anti-dumping tariffs on Chinese steel

Japan’s largest steelmaker, Nippon Steel, has expressed concerns that oversupply in China could negatively impact its domestic market. In response, the company is pushing the Japanese government to impose anti-dumping tariffs on Chinese steel imports. Executive Vice-President Takahiro Mori said Nippon Steel, along with other Japanese steelmakers, has called on Tokyo to take protective measures. He said the measures are aimed at stemming the flow of Chinese steel, especially as China’s exports have risen to their highest levels since 2016 due to weakening domestic demand.

The surge in Chinese steel exports, triggered by a prolonged downturn in the real estate market, has raised alarms in other countries. Several countries, including the US, Europe, and South Korea, have introduced protective measures. But globally, steelmakers are struggling with a tough market environment. China Baowu Steel Group, the world's largest steelmaker, recently stated that China's steel sector is facing a period potentially worse than the downturns in 2008 and 2015.

Nippon Steel has played a key role in modernizing China's steel industry through the sharing of technology and expertise since the late 1970s. But relations between the two countries have become increasingly strained, both commercially and politically. This tension is exemplified by Nippon Steel's recent exit from a joint venture with Baosteel and a strategic shift to focus on expanding its investments in the US, India, and the ASEAN region.

Baosteel, on the other hand, remains optimistic about its future exports, aiming to increase its overseas sales to over 10 million tons by 2028, despite rising global trade tensions.

Mori also mentioned Nippon Steel's ongoing efforts to complete its USD 14.1 billion acquisition of U.S. Steel, which became politically sensitive during the US presidential election. Mori said that had it not been an election year, the acquisition would likely have been completed by now, and plans to visit the US next month to meet with stakeholders.