China Places Duties on Steel

It appears the battle over steel continues. In the wake of the U.S. lifting its own 20-month tarriff on steel imports late last year, China, the world's top steel importer, has reportedly placed a hefty import duties on high-grade metal used by the shipbuilding sectors, according to a Reuters report. The U.S. lifted its tarriff in the face of a potential trade war over the matter. China reportedly implemented the new tariffs after it concluded that there was dumping of cold-rolled steel by Russia, South Korea, Ukraine, Kazakhstan and Taiwan. South Korea's POSCO, the world's fourth-largest steel maker, will be exempted as Chinese authorities concluded it was not selling its cold-rolled products below market prices, Reuters reported. "The ministry has decided that dumping of such products does exist, and has caused substantial damage," the Commerce Ministry said in a statement on its Web site (http://english.mofcom.gov.cn). China had slapped tariffs of up to 55 percent on cold-rolled steel imports from affected countries, effective immediately, it said. They would last until about September 2008. Beneficiaries in the Chinese steel industry include Baoshan Iron and Steel Co Ltd, Angang New Steel Co Ltd and Wuhan Steel.