Brazil’s anti-dumping impact on China’s color-coated steel sheets

Brazil launched an anti-dumping investigation on color-coated steel sheets imported from China.

Brazil issued Notice No. 48

On September 19, 2024, the Ministry of Development, Industry, Trade and Services of Brazil, acting as the Foreign Trade Secretariat, issued Announcement No. 48, stating that, in response to an application submitted by Companhia Siderúrgica Nacional (CSN), a local steel producer, an anti-dumping investigation was initiated on color-coated sheets imported from China and India. The investigation period of this case is from April 2023 to March 2024, and the damage investigation period is from April 2019 to March 2024. The products involved are flat rolled products of carbon steel, with each layer painted on one or both sides, equal or unequal on each side, with or without coated low-carbon steel substrate, or plastic coated; coils or sheets, with or without protective film or decorative film, commonly known as color-coated sheets on the market.

China’s color coated coil production enterprises

Color-coated coils have always been one of the products with a high export volume in my country, especially in Jiangsu, Zhejiang and Shandong, where the export orders of private enterprises account for the vast majority of the production of production enterprises. In particular, in recent years, the demand of the domestic construction industry has been decreasing, and the number of large-scale engineering projects and factory construction has decreased, which has a direct impact on the supply of domestic color-coated coil production enterprises. Therefore, more and more companies are turning their attention to exports. Then, China’s low export prices are very likely to trigger anti-dumping investigations against my country by importing countries. Previously, Brazil launched anti-dumping investigations on my country’s cold-rolled, seamless pipes, galvanized, and galvanized products.

Previous review:

On March 8, 2024, Brazil launched an anti-dumping investigation on color-coated steel sheets exported from China. The dumping investigation period is from July 2022 to June 2023, and the injury investigation period is from July 2018 to June 2023. However, since the applicant Companhia Siderúrgica Nacional (CSN) refused to conduct an on-site inspection, which affected the analysis of the case, the anti-dumping investigation on color-coated steel sheets originating from China was ended without making a judgment on the case.

1. China’s color-coated coil exports are on the rise

In July 2024, the export of coated plates and strips was 595,900 tons, a year-on-year increase of 4.99% and a month-on-month decrease of 9.01%. From January to July, the total export volume of coated plates (strips) in my country was 4.16 million tons, a year-on-year increase of 16.2%. From January to December 2023, the annual export volume of coated plates in my country was 6.3887 million tons. The overall export volume from January to July this year has exceeded that of last year. It is expected that the annual export volume this year will also exceed that of last year or reach 6.6 million tons. Judging from the export situation, my country’s export volume of color-coated coils has gradually increased in recent years.

2. The amount of color-coated products exported from China to Brazil has exceeded that of last year

Comparing the quantity and amount of color-coated steel sheets exported by my country to Brazil in the past five years, the year 2021 saw the highest export volume and amount, with a total export volume of 213,200 tons and an amount of US$232 million. It can be calculated that the export amount of a single ton of color-coated steel is US$1,087.97 per ton.

Subsequently, in 2022, the export volume was declining, but the amount per ton was rising. By 2023, the export volume will show an upward trend again, reaching 172,000 tons, but the export amount will be only US$147 million, so the amount per ton will also drop to US$857.48/ton. From the data, we can see intuitively that although our export volume has increased in recent years, the export amount per ton is still declining, which also reflects that the price of manufacturers exporting to Brazil is constantly moving downward. The export volume from January to April this year has exceeded the total volume of last year, and the export amount per ton is currently US$742.37. By comparing the above data, it is not difficult to find that in 2024, the export volume of color-coated coils exported by my country to Brazil is increasing, but the amount is decreasing instead of increasing.

3. China’s color-coated coil exports are still mainly to the Philippines and Thailand

The Philippines and Thailand are still the main export destinations for my country. In 2020, exports to the Philippines alone reached more than 400,000 tons. At that time, exports to Brazil were only more than 120,000 tons, and the export volume in recent years has remained at around 400,000-500,000 tons. The second is Thailand. my country’s exports to it have also remained at around 300,000-400,000 tons. This year, exports to Brazil are gradually increasing.

4. Impact of China’s anti-dumping investigation on Brazilian exports of color-coated steel sheets

In the first half of this year, Brazil initiated an anti-dumping investigation on color-coated coils exported from my country, but it ended in May. The new round of anti-dumping investigation will not have much impact on my country’s overall exports, but judging from the export amount, there is indeed a situation of exchanging price for volume, which requires our attention.

The export volume of color-coated steel coils in my country has increased significantly, causing some countries to set up trade barriers against our color-coated steel coils and conduct anti-dumping and anti-subsidy investigations. This situation may become more and more frequent in the future. Domestic color-coated manufacturers also need to attach great importance to and actively respond to anti-dumping investigations.