China does not dump steel at low prices

Facing menacing anti-dumping accusations from European and American steel enterprises, China Iron and Steel Association (CISA) recently said that China does not dump steel on the market and that it would respond promptly to any anti-dumping suit launched against it.

"The price of steel from China is the same as the international price. If overseas steel enterprises take steps to introduce anti-dumping measures against the Chinese steel industry, we will respond swiftly," said Luo Bingsheng, the vice-chairman of China Iron and Steel Association (CISA), on February 2.

This is the first time CISA has declared its position since word began circulating that European and American steel enterprises were going to file anti-dumping suits against China's steel industry. According to the Beijing Morning post, figures released by CISA show that China exported more than 43 million tons of steel in 2006, up 109.58 percent from the previous year. This rapid increase has prompted concern in Eurofer (the European Confederation of Iron and Steel Industries) and the US.

However, export only accounts for a fraction of the steel that China produces. Qi Xingdong, deputy secretary-general of CISA said that "43 million tons of steel is only 9.2 percent of China's crude steel output, much less than the international average of 30 to 40 percent."

By Peaple's Daily Online