Business

Only a half a decade ago, China was grappling to cope up with steel production since it logged behind other countries in producing stainless steel. It heavily consumed steel which it needed for manufacturing and electricity. However, recent capitalization in its two premier steel manufacturing companies have made China as one of the world´s top producer of stainless steel considering that two decades ago, this market was dominated mainly by USA and Japan. Also, China was one of the biggest consumer of stainless steel that relied on importing its steel from the aforementioned countries.

Because of the progressive growth of China´s steel industry, a lot of developed countries felt threatened by rapid expansion of imported steel from China. Foremost among the countries that felt China´s might is the European bloc which caused them to issue a 24% dumping duty on imported steel products from China according to a news report from China daily.

The imported steel wire rods from China were alleged to have badly hurt the local steel industries in Europe. Likewise, China also made some tax levies on Russian and American steel imports. Apparently, China is becoming more confident as its steel industry is experiencing massive growth.

There are two main reasons why China has an advantage in steel production: it has a high number of workers in the steel industry due to its large population base and setting up a steel factory in China is less expensive than building one in developed countries like US. The power cost to process steel is also lower which makes production cost 40% less than production in European countries. No wonder, steel made in China is really cheaper than from western manufacturers. However, China still imports some forms of steel such as ores and other types of steel needed for power plants.

Individuals interested in importing steel from China should get in touch first with the local trade industry to determine current import regulations governing steel imports from China. It is also helpful to secure advice from importer specialists in gaining a better understanding of importing steel from China so there would be no legal implications.

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