Background: Canada has announced that it will impose a 25% tariff on steel and aluminum products originating from China starting October 15. The affected stainless steel products include cold-rolled and hot-rolled coils, bars, wires, angles, sections, special shapes, seamless pipes, and welded pipes, covering the majority of stainless steel products. Detailed information is as follows:
Significant Increase in Stainless Steel Exports from Mainland China to Canada
Since 2021, the volume of stainless steel products exported from Mainland China to Canada has increased significantly, rising from an average of less than 2,000 tons per month to more than 5,000 tons per month in 2024.
From January to July 2024, the cumulative volume reached approximately 37,300 tons, an increase of 11,000 tons year-on-year, reflecting a 41.4% growth. The current volume is at a high level.
Mainland China’s Stainless Steel Exports Are Primarily to Asia, with Minimal Exports to Canada
Mainland China primarily exports stainless steel to Vietnam, Russia, India, South Korea, and Turkey, with a focus on Asian markets. Exports to Canada remain minimal, accounting for only 1% of the total.
As a result, the 25% tariff imposed by Canada will have a limited impact on Mainland China’s overall stainless steel exports.
Cold-Rolled Coils Dominate Mainland China’s Stainless Steel Exports to Canada
In terms of the types of stainless steel products exported to Canada, cold-rolled coils account for the majority, comprising 66% of exports (of which cold-rolled coils with a width of ≥600mm make up approximately 65%). Hot-rolled coils follow with an 11% share (of which hot-rolled coils with a width of ≥600mm account for about 10.8%).
The 25% tariff will have a slightly larger impact on the export of cold-rolled wide coils compared to other products.
It is worth noting that stainless steel flanges, threaded elbows, bend pipes, pipe fittings, and butt-weld fittings are not included in the tariff scope. These products account for only 3% of Mainland China’s stainless steel exports to Canada, and the volume is relatively low.
Conclusion
In conclusion, Canada’s decision to impose a 25% tariff on the majority of stainless steel products from China appears to mimic the United States’ actions. However, since Mainland China’s stainless steel exports to both the U.S. and Canada are relatively low, the impact of the tariffs on China’s overall stainless steel exports will be limited. That said, the effect on cold-rolled coils with a width of ≥600mm will be somewhat more significant compared to other products.