US: Anti-dumping measures on steel sheet imports from Japan to continue

The United States has continued with the anti-dumping (AD) measures against Japan imposed in 2015-2016 on three steel sheets. The AD measures were reviewed and investigated for five years under WTO (World Trade Organisation) rules, but it was decided that the measures should stay in place.

The International Trade Commission's (ITC) vote on the continuation or elimination of AD measures was held recently. In addition to Japan, 11 countries and regions participated. Of these Australia, Belgium, China, France, Germany, Italy, South Africa, South Korea, Taiwan, and Turkey voted to continue with the measure, while only Brazil voted agianst it.

Previously AD measures on cold-rolled steel sheets and hot-rolled coils from Japan had also been reviewed. The country responded to the investigation and demanded their abolition.

Exports of three steel sheets to the US have fallen sharply after the introduction of AD, and it is difficult for Japan Steel and JFE Steel to increase exports in the future due to structural reforms in domestic production capacity. Moreover, the sunset review was conducted last year at a time when the steel market was booming and US steelmakers were performing well.

The continuation of the AD measures was strongly questioned, but the US was adamant as the country predicted that imports could increase again if the measures were lifted. Not only anti-dumping measures, but also the Ministry of Commerce increasingly certifies "circumvention exports" as a new trade barrier.

The US has planned to launch new facilities one after another by 2025, and late last year Nucor, the largest electric furnace company, started up a new plank plant in Kentucky that claims to cover 97% of the specifications used in the US.

In addition to the US's steel self-sufficiency, presidential elections are coming up next year, and it is unlikely that US steel trade measures will change from both a demand and supply as well as political perspective.

Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.