Trade war between US, China likely to flood India with steel

Indian companies are bracing for a possible flood of steel imports should the US and China follow through on their threats about a trade war.

Duties imposed by the US would trigger “trade diversion” from other steel makers, who would then dump their products in India, said Bhaskar Chatterjee, secretary general at Indian Steel Association, in an email interview. As much as 80 million tons of steel — or 17% of global exports, based on World Steel Association data — could be diverted to markets such as India, according to Seshagiri Rao, joint managing director of the country’s top mill, JSW Steel Ltd.

The comments highlight the uncertainties surrounding global trade ahead of July 6, when President Donald Trump’s tariffs on $34 billion of Chinese goods are scheduled to kick in, a move that China has vowed to retaliate against. India stands out as an attractive destination because it’s the world’s fastestgrowing major economy. The country has also much riding on the health of its steel industry because it’s expected to overtake Japan as the world’s secondlargest steel-producing nation as soon as this year.

Other steelmakers have voiced concerns about a looming trade war.

Thyssenkrupp AG’s Italian

MUMBAI:

China has announced sectors of the economy where it will ease foreign investment rules, with leaders stepping up efforts to portray the country as opening up as they prepare for a possible trade war with the US. The new “negative list” outlines key reforms in the financial sector while dropping restrictions in areas including the car industry, agriculture, infrastructure and mining. The list released Thursday by the National Development and Reform Commission (NDRC), which will come into effect on July 28, will reduce the number of fields with limits from to 48, from 63 last year.

AFP

BEIJING:

unit said it will take a $220 million sales hit if the European Union doesn’t take measures. The Canadian government is preparing countermeasures to prevent a flood of steel imports through a combination of quotas and tariffs. Similar steps are being considered by the European Union too.