Chinese steelmakers are avoiding tariffs by exporting semi-finished products to countries like Indonesia and Turkey, sparking concern in Beijing over lower-value exports. Record steel exports have led to 38 anti-dumping investigations globally. Exports of steel billet tripled from January to May, reaching 4.72 million metric tons. Top destinations include Indonesia, the Philippines, Saudi Arabia, Italy, and Turkey.

Chinese steel exports are fueling rapid growth due to fewer trade barriers for steel billet than finished steel. Trans-shipment in Southeast Asia involves importing Chinese billet, processing it, and re-exporting it. President Trump’s steel tariffs have disrupted this trade. China’s weak economy and property sector drive the need for exports, whether billet or finished steel.

China’s state-backed industry body is urging steelmakers to focus on higher-value products instead of billet exports. The China Iron and Steel Association recommends limiting billet exports to maintain focus on higher value steel products. Beijing is considering imposing an export tax on steel billet to encourage this shift. The added value for steel billet is lower compared to finished steel products.

Read more at Yahoo Finance: Chinese steel companies find new tariff workaround: steel billet