Steel producers in Asia are being hit hard after Russia exported cheap steel to the market

The amount of cheap steel from Russia now flowing into Asia is a cause for concern for steel producers in Asia. As a result, one of the largest steel producers in Asia warned that the situation could lead to various measures to counter trade.

A group of Asian steel producers that monitors steel trade movements across the Asian region said Russia is supplying more steel to eastern countries. Sanctions have denied Russia access to Western markets, and the war in Ukraine has led to a halt in exports to the Black Sea region. Russia’s actions have increased pressure on a market already hurt by slowing demand in China.

Taiwan’s China Steel Corp. is gathering the evidence it needs to prepare to fight unfair behavior, while Japan’s Tokyo Steel Manufacturing Company said that if domestic demand recovers, China could switch to buying cheap steel from Russia instead of importing steel from Asia.

The current situation on the steel market is similar to that of other raw materials, from coal to crude oil. Russia is looking for new customers at a time when Russia is subject to global sanctions or blockades.

In the past, Russia has shipped surplus steel, especially billets, a semi-processed steel product, to Turkey. But Russian steel mills are now pushing to sell their steel to China and other Asian countries at low prices.

China Steel, a major Taiwanese steel producer, as well as U.S. Steel Corp. said they are keeping an eye on Russian hot-rolled steel products currently flooding the Asian region. It was reported that Russia had offered to sell the steel at a low price.

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