The steel squeeze: Asean at risk of becoming world’s steel dumping ground
As the US tightens trade barriers and China struggles with oversupply, the region’s steel industry faces pressure to protect its markets from a flood of cheap imports
[SOUTH-EAST ASIA] A potential steel glut could hit South-east Asia as US tariffs on Chinese imports upend global trade flows, reviving fears of a 2020-style price crash that forced governments to slap anti-dumping measures to shield their domestic industry.
Local industries are bracing themselves as pressure mounts with the US government’s 25 per cent steel tariff – primarily targeting China – flooding South-east Asia with surplus Chinese steel, raising the threat of a price war – unless governments step in with protectionist measures.
This is unfolding as steel demand in South-east Asia’s major economies is still struggling to recover after the pandemic while utilisation rates are well below the global average, leaving the region vulnerable to overcapacity.
Copyright SPH Media. All rights reserved.
