Baosteel Group, which owns Baoshan Iron and Steel Co. Ltd., China’s largest and most advanced integrated steel manufacturer in Shanghai, has said it will defend its legal rights in accordance with international regulations and laws in the case relating to United States Steel Corp.’s complaint against Baosteel.

On April 26 U.S. Steel Corp. filed an application against Baosteel and other Chinese steel makers under Section 337 of the U.S. Tariff Act of 1930, seeking to bar import of Chinese carbon and alloy steel products. U.S. Steel Corp. alleged that 40 Chinese companies, including Baoshan, have exported steel products to the U.S. in violation of Section 337. It also alleged a conspiracy by the Chinese steel companies to control prices, misappropriating trade secrets and misstating the origin of products, over which the U.S. International Trade Commission has launched an investigation.

Baosteel denied the allegations, calling them groundless, and said its operations are market-oriented and legal. It underlined its independent research and development efforts and accused U.S. Steel Corp. of disrespecting and vilifying it and its R&D staff.

Zhang Xiaoli, a senior analyst with the industrial information provider MySteel.com, said it is easy to understand why steel products from China are cheaper than those made elsewhere. Chinese steel makers can produce more and enjoy lower labor costs, she said. So production costs are lower, but this also creates serious problems such as oversupply and fierce competition.

“Chinese steel companies made 1.1 billion tons of steel products last year, and about 112 million tons of that was exported, including 2.4 million tons to the U.S. Exports to the U.S. were down from 3.5 million tons in 2014.”

Zhang Tieshan, another analyst with MySteel.com, said the pricing of Baosteel products is open and transparent. The fact that Baosteel makes half the country’s auto sheets means the company has…

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