Metal & Oil & Gas News –
Climbing shipments of steel from China are the biggest concern of rival producers in Japan. Mr Koji Kakigi, chairman of the Japan Iron and Steel Federation, said he fears the escalating Sino-US trade war could crimp development of the Chinese economy, potentially sapping local demand for steel and pushing more of the commodity into export markets. He said “We need to closely observe the rising exports from China. Our biggest worry is a scenario that the US China trade war would dent China’s economy and steel demand, leading to a surge in China’s steel exports.”
He added “The Japanese steel industry is also concerned over a demand-hit from the potential imposition of broad US tariffs on the automotive sector as it would impact their auto and auto parts customers.”
His comments come as China’s steel exports rose 2 percent in June from a year earlier, marking an 11-month high and their first year-on-year increase in 23 months, buoyed by strong international prices and a weaker yuan.
Source : REUTERS
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