Nippon Steel Urges "Tariffs on Chinese Steel Should Also Be Imposed"

End of Joint Venture with Baoshan Steel Last Month
"Governor Walz Positive on Nippon Steel Investment"

Japan Steel Works, the world's fourth-largest steel company, urged the Japanese government on the 29th (local time) to impose anti-dumping tariffs on Chinese steel to protect domestic industries.

Mori Takahiro, Vice Chairman of Japan Steel Works, expressed concerns in an interview with Bloomberg News that China's steel exports will increase further and said that, along with other steel companies, they are lobbying the Japanese government to take protective measures.

[Image source=AP Yonhap News]

China's steel exports surged this year, reaching the highest level since 2016. This is due to a decline in domestic demand caused by a slump in the real estate market in China. Vice Chairman Mori stated, "Many countries such as the European Union (EU), the United States, and South Korea have introduced defensive measures, but if Japan does not take similar actions, (Chinese steel) exports will flood into Japan."

Baowu Steel, China's largest steel company and the world's number one producer by volume, recently warned that the Chinese steel sector is facing a "harsh winter" more severe than those in 2008 and 2015. Japan Steel Works is also preparing for an unprecedentedly harsh business environment. Bloomberg pointed out that China's steel overproduction is a global issue.

Last month, Japan Steel Works ended its joint venture with Baoshan Steel, a subsidiary of Baowu Steel. Vice Chairman Mori said that Japan Steel Works will make case-by-case decisions regarding other joint ventures in China and plans to expand investments in the United States, India, and the ASEAN region instead of the Chinese market.

Japan Steel Works is pursuing the acquisition of US Steel in the United States. The day before, US Steel announced an additional investment of $1.3 billion (approximately 1.7363 trillion KRW) in two steel plants it owns. In December last year, Japan Steel Works proposed acquiring US Steel for $150 billion (approximately 20 trillion KRW), but the deal has faced difficulties due to opposition from U.S. political figures including President Joe Biden and former President Donald Trump, as well as steel labor unions.

Vice Chairman Mori said, "If it weren't for this year's presidential election, the acquisition deal would have been completed long ago," and added, "I plan to visit the United States next month to meet with stakeholders." He also revealed that he met with Minnesota Governor Tim Walz at the opening ceremony of a pellet production facility in Minnesota last May, before Walz was named Vice President Kamala Harris's running mate. At that time, Governor Walz was very positive about Japan Steel Works' investment.