Taigang Stainless, China's biggest stainless steel producer, is encouraging its distributors not to export some its products in order to avoid trade tensions, according to widespread rumours in the Chinese stainless market.
The steelmaker may have asked some of its agents not to send at least some material oversas, as more attention is being paid to exports from China.
Several countries are investigating higher volumes of stainless imports from China.
“Taigang recently sold some stainless steel at very cheap prices, and Taigang doesn’t want this batch of products to get out of China,” an exporter in Shanghai said.
It is difficult to know the exact price and volume of this batch of products, but according to traders the material was sold well below current spot price levels.
“They are stocks which are difficult to sell, because the quality is not good, ” a trader in Wuxi said. “Domestic traders find it difficult to sell in domestic market, so they want to export.”
But traders also pointed out that Taigang can hardly prevent its products from being sold on.
“Traders could negotiate with customers to say they are selling Taigang’s product, but when actually exporting, they can just split off the Taigang tag, in order to be find out by customs,” one exporter said.
China's March stainless flats exports up 41.5% as shipments to Taiwan and South Korea continue increasing during the month.