Oxin Steel to Profit From Reduced Chinese Presence in EU

EghtesadOnline: Oxin Steel Khuzestan Company is preparing to boost exports to the European Union after the EU commission decided to limit Chinese imports.

News ID: ۷۷۷۳۴۷

03 July 2017

“This is a good opportunity for Oxin to increase shipments to Europe, as limiting Chinese steel exports can help Iranian steel find a foothold in international markets,” the company's trade manager, Nasser Qasemi, was quoted as saying by its website.

The EU set up duties of up to 35.9% on imports of hot-rolled flat steel from China back in June to counter what it says are unfair subsidies.

The European Commission conducted an investigation on behalf of the 28 EU members and found a number of Chinese companies had benefited from preferential lending from state-owned banks, grants, tax deductions and the right to use industrial land, Reuters reported.

“We are continuing to act, when necessary, against unfair trading conditions in the steel sector, and against foreign dumping,” EU Trade Commissioner Cecilia Malmstrom said in a statement.

Capitalizing on the situation, Oxin is in talks with Spanish, Italian and German companies to meet their demand for flat steel, according to Financial Tribune.

According to Qasemi, foregoing engagement with middlemen and directly talking to clients overseas are part of Oxin’s new trade policy.

The company’s long-term plan is to use European slab for flat production for boosting efficiency.

“We are hoping to record a considerable rise in exports in the current year,” Qasemi said, adding that Oxin Steel intends to move toward production of special-grade flats based on the clients’ demands.

The company has already made preparations for exporting two 15,000-ton shipments of steel to Italy and Spain.

Oxin Steel shipped its first batch of steel plates to Germany from the southern Iranian port of Bandar Imam Khomeini back in April. The shipment weighed about 15,000 tons and was valued at $24 million.

Oxin steel is Iran’s only producer of steel plates used in shipbuilding.