Xia Nong, inspector at China’s National Development and Reform Commission (NDRC), has stated in a media interview that the highest level of domestic steel plate prices in China last year was RMB 3,600/mt ($542.2/mt), while this was still far lower than the Chinese steel plate export prices recorded in the same period. Accordingly, he stated, it is groundless to consider China’s steel exports as dumping since steel enterprises would achieve high profit margins when exporting steel to other countries.
“Finished steel trade, in essence, in a spontaneous market behavior which depends on the needs of importers and the cost-effective characteristics of finished steel products. China’s finished steel products actually form a good complementary relationship with some importers’ downstream industries and bring them great benefits,” Mr. Xia said, while urging countries taking action against China’s steel exports to strengthen dialogue and communication and resolve trade frictions rather than taking unreasonable measures. “In the meantime, China is stepping up efforts by means of mergers and reorganization, assets restructuring and bankruptcy liquidation to resolve high debt ratios when eliminating excess and outdated capacity in the domestic steel industry.” Mr. Xia added.