US has raised its import duties on Chinese steelmakers by more than fivefold

The US has raised its import duties on Chinese steelmakers by more than fivefold after accusing them of selling their products below market prices.

The taxes of 522% specifically apply to Chinese-made cold-rolled flat steel, which is used in car manufacturing, shipping containers and construction.

The US Commerce Department ruling comes amid heightened trade tensions between the two sides over several products, including chicken parts.

Steel is an especially sensitive issue.

US and European steel producers claim China is distorting the global market and undercutting them by dumping its excess supply abroad.

US steel makers say that the Chinese government unfairly subsidises its steel exports. Meanwhile China has been under pressure to save its steel sector, which is suffering from over-capacity issues because of slowing demand at home.

China's Ministry of Finance has not directly responded to the US ruling but on its website this morning it has said that China will maintain its tax rebate policy for steel exports as part of its efforts to help the bloated steel sector recover.

These tax rebates are seen as favourable policies to shore up ailing steel companies in China, and to avoid massive job losses. Expect more fiery rhetoric from the US on China's unfair trading practices soon.

Britain’s steel trade body and unions have called on the UK and the EU to take urgent action to stop Chinese steel dumping, after the US government increased tariffs to more than 500%.

China denies that its mills have been dumping their products in other countries, arguing that its steelmakers are more efficient.

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China's Shanxi suspends new ferroalloy, aluminum, steel project approvals

Shanxi province in northwest China has suspended the approval of new ferroalloy, aluminum and steel projects in 2016 as part of air pollution control plans, the provincial government said Wednesday.

The suspension is also aimed at reducing surplus supply in the sectors, the provincial government said in a report on its website.

Shanxi's steel and nonferrous metal sectors are high consumers of energy and water, resulting in pollution and water shortages, according to the government.

It is aiming to improve air quality and lower emissions by streamlining its industry structure.

The province also targets scrapping 33,000 outdated vehicles and banning high emission vehicles from January 1, 2017.

Shanxi was among China's 10 largest aluminum producing provinces in 2015, producing 660,257 mt of refined aluminum in the year, down 20% from 2014, data from the China Nonferrous Metals Industry Association showed.

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EU adopts new prior-surveillance system for steel imports to protect industry

The European Union (EU) announced on Friday that it had established a prior-surveillance system for import of steel products into the bloc in order to further protect its own steel industry.

Based on the regulation adopted on Friday, imports of steel products into the EU will now need an import license, said the EU's executive arm the European Commission in a statement.

The commission said the new mechanism was part of "a series of measures aiming to support the EU steel sector."

The EU has long claimed that importing steel products from third countries, such as China, have jeopardized its own labor market.

But Beijing warned that trade protectionism measures would do no help to tackle global steel overcapacity.

The steel industry in Europe represents 1.3 percent of EU GDP and provided around 328,000 jobs in 2015, the commission said.

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