Anti-dumping duties levied by the US on Taiwanese-origin steel would have a limited effect on the local industry, Minister of Economic Affairs Shen Jong-chin (沈榮津) said yesterday.
“After discussing with China Steel Corp (中鋼) and other local businesses, we believe that the effects will be moderate,” Shen told reporters in Taipei.
The remarks came after the US Department of Commerce on Monday announced that it would be imposing duties of up to 456 percent on corrosion-resistant steel and cold-rolled steel (CRS) products that are manufactured in Taiwan, China and South Korea, and shipped to Vietnam for minor processing before being exported to the US.
The department imposed a 3.66 percent duty on Taiwanese-origin steel and 48.99 percent duty on South Korean-origin steel.
The highest levy of 456 percent applies only to Chinese products.
Taiwanese shipments of steel products to Vietnam have increased moderately over the past few years, data published yesterday by the Bureau of Foreign Affairs showed.
There is only weak evidence to support the US’ claim that Taiwan, along with its Asian peers, is seeking to evade US duties by diverting steel shipments through Vietnam, the bureau said.
While Vietnam remains Taiwan’s biggest market for hot-rolled steel products, shipments declined from 1.21 million tonnes in 2016 to 1.18 million tonnes last year, the data showed.
Shipments of CRS products to Vietnam make up only 2.4 percent of overall CRS exports, the bureau said.
Taiwan’s total CRS exports increased from 29,900 tonnes in 2016 to 32,500 tonnes last year, the data showed.
The Taiwan Steel and Iron Industries Association yesterday said that it would be pointless to try to avoid US duties by processing steel products in Vietnam before shipping them to the US, as Taiwanese steelmakers would have to bear Vietnamese duties on top of shipping costs.
China Steel Corp had previously said that its Vietnamese venture, China Steel Sumikin Vietnam Joint Stock Co (中鋼住金), which produces CRS products, uses raw materials sourced in Vietnam, as it looks to avoid US duties.
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