Japan may take action to respond to China's growing steel exports, ministry official says
By Yuka Obayashi
TOKYO, Oct 10 (Reuters) -The Japanese government may take trade action if needed in response to growing steel exports from China, the world's biggest steel producer, an official at Japan's industry ministry said on Thursday.
"We are concerned that in many cases Chinese steel is being exported at significantly low prices, affecting global supply and demand as well as pricing," Manabu Nabeshima, director of the metal industries division at the Ministry of Economy, Trade and Industry (METI), told a news conference.
"At this point, we have not decided on any specific immediate action, but we believe we need to take measures in a swift manner, if necessary," he said, hinting at potential measures permitted under World Trade Organisation (WTO) rules.
Nippon Steel 5401.T Vice Chairman Takahiro Mori told Reuters in August that it and other Japanese steelmakers are urging Tokyo to consider curbing cheap steel imports from China to protect the Japanese market.
Weak steel demand at home has encouraged China to offload its surplus stocks by offering competitive prices to overseas buyers, according to Japanese steel industry sources.
Canada, following the lead of the United States and European Union, announced a 25% tariff in August on imported steel and aluminium from China. In Asia, India is planning to raise tariffs on Chinese steel.
China's commerce ministry said earlier this month it has asked the WTO to rule on Canada's imposition of steep tariffs on Chinese steel and aluminium products as well as on electric vehicles.
"It is clear that Chinese steel exports will shift to regions that have not implemented trade measures, and we are very concerned that steel inflow to Japan could rise rapidly in the future given global trends," Tadashi Imai, chairman of the Japan Iron and Steel Federation, told reporters last month.
"We will closely monitor production capacity and local demand in each country and will urge the government to take appropriate trade measures if necessary," he said.
Reporting by Yuka Obayashi
Additional reporting by Ritsuko Shimizu
Editing by Frances Kerry
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