China Steel Export could Cool Down, Mr. Bada

Japan Iron and Steel Federation’s chairman Hajime Bada, who is president of JFE Steel, said on Thursday at monthly press conference he expects China’s steel export will be controlled moderately when Chinese government reduced the export tax return from 11% to 8% to reduce export though China’s export expands since March. Mr. Bada said China’s steel supply is imbalance for the domestic demand resulting in net export when scrap of inefficient old facilities delays while efficient new facilities start operations though both supply and demand increase. He said, however, China exports steel products for mainly for Southeast Asia, USA and Europe while Chinese steel export doesn’t increase to Japan except for some items. He said USA and Europe, in which steel demand is firm, absorb Chinese higher export. Mr. Bada said if steel demand would decrease in USA and Europe, those countries could file antidumping petitions against China and international steel trade balance could be worse. He hopes China scraps old production facilities to balance the domestic supply balance. He said Japanese steel industry will inform the position to Chinese industry at talk in the end of October when Japanese import from China increases for some items including carbon steel wire rod. Mr. Bada said hostile takeover bid wouldn’t result in success in many cases in world business and many of Japanese companies could refuse such move. He said if someone would try to acquire others in hostile manner, the move could fail. He said Japanese companies will be cautious more for the hostile move.