New trends in the steel industry global trade frictions and new opportunities for cooperation under tariff barriers

Barriers to trade are providing a serious transformation in the global steel industry as the traditional patterns of the market are being remodeled with trade frictions playing a major role. Shandong Runhai Stainless Steel Co., Ltd. understands such dilemmas as our innovation driver and the new types of international collaboration.

An Emerging Wave of Protectionism

There have been rising tariff barriers in the recent years:

The fact that the U.S. is still keeping Section 232 tariffs (25% on steel imports)

Carbon border adjustment measures under the EU

Anti-dumping tariffs of new markets

These factors have interfered with supply chains that have been in place resulting in the players in the industry reviewing their international strategies. Nevertheless, even in these limitations, there is (and will be) potential opportunities to flexible manufacturers.

New Collaboration patterns

Proactive organisations are coming up with new strategies:

Domesticated Production Coalitions

Setting of joint ventures in tariff regions

Technology exchanges with the local manufactures

Value-Added Products Strategies

It will transform a raw material (bulk commodities) to exclusive steel products.

Creation of tariff-free product lines

Green Steel Alliances

Transnational partnerships on low-carbon production

Community RandD in Using Hydrogen to make steel

Adaptive Solutions of Shandong Runhai

In response to such market changes, we have:

A wide range of products: highly-standardized carbon steel、galvanized coils to specialized applications of stainless steel

Strategic Stocking Locations: To cushion against tariff effects an inventory should be kept at strategic locations where the products are sold.

Technical Collaboration: Collaboration with international partners to create formulas of compliant products

The future outlook: co-operation rather than competition

In the industry, there is a trend toward:

Regional integrated supply chains

Technology-sharing platforms

Standard carbon accounting ways

These trends are an indication that in the future, cooperation can be more useful than competition itself.

Conclusion

Although trade frictions are a problem, they also ensure innovation in the international trade in steel. Shandong Runhai does not agree to be tied down by tariffs, but does her best to come with mutually profitable solutions that go above the tariff framework by delivering quality products and collaborative relations.