Protective Trade Movement in World Steel Market Grows as Crude Steel Production Increases

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Researched by Industrial Info Resources (Sugar Land, Texas)--As result of excess supply, "trade disputes" concerning steel production capacity have expanded in recent years. Many appeals are being made worldwide for "safeguard" measures. Also, the crude steel production is increasing. Total production from January to September was 1.19 billion tons, more than 2.7% higher than the corresponding period last year.

The Philippines began its investigation into galvanized iron and pre-painted sheets and coil at the beginning of October. Also, the Colombian government accepted six cases for safeguard appeals directed toward iron and steel products in the third quarter.

At this point, it is unlikely these issues will have a significant impact on Japanese steel manufacturers; however, there are concerns that the safeguard movement will affect the entire market if it continues expanding.

The World Steel Association (Brussels, Belgium) announced on October 21 that global crude steel production for September 2013 was 132.55 million tons, up 6.1% from the same month in 2012. This will be 12 straight months in which the production exceeds the performance of the previous year.

The increase in crude steel is due to stronger production in developed countries, such as Europe, the U.S. and Japan, in addition to China's 11% increase in the past two months.

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