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In response to trade frictions, Chinese steel companies are exploring new paths for "global layout"
2025-08-13
In response to the challenge posed by South Korea, Vietnam, and other countries imposing anti-dumping duties on Chinese steel, Chinese steel companies are shifting from a passive response to a proactive approach. In the short term, entrepot trade is key – using third countries like Malaysia and Thailand as transit routes allows companies to circumvent anti-dumping duties of up to 38%, but incurs an additional 10-15% in costs. In the long term, this requires the development of overseas bases. A leading steel company has invested in a 2 million ton annual electric furnace in Indonesia, scheduled to begin operations in 2026 and directly supply the Southeast Asian market.


At the policy level, the Ministry of Commerce encourages companies to participate in regional cooperation under the RCEP framework, projecting a 28% year-on-year increase in steel exports to RCEP member countries in 2025. Industry insiders suggest that steel companies combine product differentiation with localized services, such as promoting high-strength construction steel in the Indian market and focusing on wind power steel in the Brazilian market, leveraging technological advantages to offset trade barriers.

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