Taiwan Finds Evidence of Injury from ChineseSteel Imports
Taiwan's Ministry of Economic Affairs announced on April28, 2025, that a review board has found reasonable evidence that Chineseimports of hot-rolled flat steel have caused material injury to domesticproducers. This preliminary determination marks a significant step in Taiwan'strade defense measures against what it perceives as unfairly priced steelimports from mainland China. The investigation, which began followingcomplaints from local steel manufacturers, revealed a pattern of surging importvolumes since 2022, coupled with aggressive pricing strategies that haveundercut domestic producers and disrupted the local market. The ruling signalsTaiwan's increasing concern about protecting its strategic steel industry amidchallenging global market conditions
Import Surge and Price Undercutting CreateMarket Disruption
According to the MOEA investigation, Chinese hot-rolledsteel imports have increased substantially since 2022, creating significantpressure on Taiwan's domestic steel industry. More concerning for localproducers has been the pricing strategy employed by Chinese exporters, withimport prices falling below domestic levels since 2023. This price undercuttinghas forced Taiwanese manufacturers to reduce their own prices to remaincompetitive, often selling below production costs. The investigation found thatthis unsustainable pricing environment has led to market share losses fordomestic producers and declining performance across key economic indicators,including profitability, capacity utilization, and employment. The preliminaryfindings suggest that without intervention, Taiwan's steel industry facescontinued deterioration.
Next Steps in the Anti-Dumping Process
Following the preliminary injury determination, Taiwan'sMinistry of Finance will now have 70 days to decide whether to imposeprovisional anti-dumping duties on Chinese hot-rolled steel imports. Thisdecision will involve calculating dumping margins based on price comparisonsbetween Chinese export prices and normal values. If provisional duties areimposed, they would remain in effect while the full investigation continues.The MOEA indicated that unless the investigation period is extended, finalresults are expected by early July 2025. At that point, permanent anti-dumpingduties could be imposed for a period of typically five years if the finaldetermination confirms both dumping and injury. The case represents one ofseveral trade remedy actions Taiwan has initiated to address concerns aboutChinese steel imports
Key Takeaways:
• Taiwan's Ministry of Economic Affairs has determined thatChinese hot-rolled steel imports have caused material injury to domesticproducers, with imports surging since 2022 and prices falling below domesticlevels since 2023, forcing local producers to cut prices below productioncosts.
• Following the preliminary injury determination, Taiwan'sMinistry of Finance will decide within 70 days whether to impose provisionalanti-dumping duties, with final results expected by early July 2025 unless theinvestigation period is extended.
• The case highlights Taiwan's strategic concerns aboutprotecting its steel industry from low-priced Chinese imports, reflectingbroader global trade tensions in the steel sector where China producesapproximately 50% of the world's steel and over 20 countries maintainanti-dumping duties on various Chinese steel products.
