Iron or steel structures and parts thereof (HS730890)

The product iron or steel structures and parts thereof HS730890 forms part of grouping HS7308 structures of iron or steel and parts thereof; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures of chapter HS73 iron and steel articles. Grouping HS7308 comprises 4 other products: HS730810 iron or steel; structures and parts thereof; bridges and bridge-sections; HS730820 iron or steel; structures and parts thereof, towers and lattice masts; HS730830 iron or steel; structures and parts thereof, doors, windows and their frames and thresholds for doors; HS730840 iron or steel; structures and parts thereof, props and similar equipment for scaffolding, shuttering or pit-propping.

The product HS730890 attracts average import tariffs in 2017 (applied most favoured nations) of 0 percent in Japan, 0 percent in the U.S., 0 percent in the E.U. and 4. percent in China.

The proposed U.S. steel tariff excludes HS730890 but the large proportion of affected sectors out of steel mill products will likely induce significant price and quantity adjustments of affected and related sectors. The net benefit on HS730890 is unclear.

Query

The hanse query example shows EU-15 as reporter. Other reporting countries can also be used. The partners are entered as All, encompassing all countries, to allow subsequent analyses of market share developments and to filter countries’ market share relations.

Figure 1. Entry mask

The hanse query example shows EU-15 as reporter. Other reporting countries can also be used. The partners are entered as All, encompassing all countries, to allow subsequent analyses of market share developments and to filter countries’ market share relations.

 
 
/ Sectors Range

Sector share

The iron or steel structures and parts thereof (HS730890) constitutes US$12 billion of imports of the EU15, U.S., China and Japan combined. The E.U. has remained the largest importer of HS730890, representing 58 percent of total imports of the EU15, U.S., China and Japan combined in 2016. The sector marks an expansion representing 0.16 percent of EU15 imports in 2016 compared with 0.14 percent in 2010 with the total value of EU15 imports being US$7.3 billion in 2016. U.S. imports of HS7300890 expanded most in 2010-2016 from US$1.3 billion to US$3.1 billion showing the fastest expansion compared with EU15, China and Japan.
Table 1. Sector shares HS730890

Imports20102016Change

Percent
EU150.14 0.16 0.02
United States0.060.140.08
China0.030.030.00
Japan0.190.260.07
Million
EU15$6,507$7,268 $761
United States$1,261$3,108$1,848
China$401$463$62
Japan$1,329$1,583$253
Sum$9,497$12,422$2,924

Figure 2. Import markets of HS730890

Market share

Germany has remained the largest trading partner in HS730890 of the EU15 in 2016 with a market share of 17 percent. It has lost market share In the EU15 and the U.S. but expanded its market share significantly in China from 12 percent in 2010 to 17 percent in 2016.
Table 2. Germany market share HS730890

Imports20102016Change

Percent
EU1518.3717.11-1.26
United States6.124.27-1.85
China11.7816.664.88
Japan0.490.990.50
Sum13.9611.82-2.14

The largest 10 trading partners of the EU15 represent 71 percent of EU15 imports of HS730890. Except for Poland, new challenger countries have increased their market share in EU15 fast expanding by more than 8 percentage points between 2010 and 2016.

Figure 3. Largest market share HS730890
EU15 imports, 2010-16

Figure 4. Fastest growing market share HS730890
EU15 imports, 2010-16

U.S. steel tariffs

HS730890 has not been included as part of the recent U.S. steel and tariff proposals. HS730890 is among the largest and fastest growing exempt steel sector in U.S. imports. Germany has maintained a strong position in U.S. exempt steel products.

The tariff proposal covers steel mill products including HS720610 through HS721650, HS721699 through HS730110, HS730210, HS730240 through HS730290, and HS730410 through HS730690 and any subsequent revisions to these HS codes.1 While the E.U has been granted a temporary exemption from the tariffs, the tariff imposition will likely cause significant price and quantity adjustments in affected and related sectors. If the exemption is not made permanent, the impact on the affected sectors will likely be more severe.

The imposition of tariff will likely cause some product substitution or through re-direction of trade quantity adjustments. The targeted products represent in 2016 0.98 percent of U.S. imports and 39.42 percent of U.S. imports of steel mill products.

Table 3. U.S. steel tariff affected products

 20102016Change
Steel mill products (HS7206-29, 7301-06)
Percent of U.S. imports1.100.98-0.12
Percent of iron or steel and iron and steel products42.5239.42-3.11

The steel sectors that have been exempt from U.S. tariffs include a variety of products that have increased their sector share in U.S. imports from 1.3 percent in 2010 to 1.4 percent in 2016 and represent in 2016 US$13.0 billion in imports. In the 10 fastest growing exempt sectors, Germany has increased its market share from 4.0 percent in 2010 to 4.2 percent in 2016 on average.

The 10 fastest growing steel sectors in U.S. imports that have been exempt from U.S. tariffs also progress significantly in Japan in 2010-16 from 0.4 percent in 2010 of Japan’s total imports to 0.6 percent in 2016 and constituting in 2016 US$3.4 billion in import value. Germany has been less successful in increasing its market shares in these sectors growing from 1.7 percent in 2010 to 1.8 percent in 2016 on average.

Figure 5. Germany market share
U.S. imports 2010-16, 10 fastest growing exempt steel products, percentage points


Figure 6. Germany market share
Japan imports 2010-16, 10 fastest growing in U.S. imports exempt steel products, percentage points

Concepts

Trade classification—The Harmonised System (HS) of 2002 distinguishes 98 chapters, 1245 groupings and 5226 products. The HS is the main international trade classification and classifies goods on a common basis for customs purposes and uses a 6-digit classification. The first two digits identify the chapter of the good, e.g. 09 = coffee, tea, maté and spices; the next two digits identify the groupings within that chapter, e.g.09.02 = tea, whether or not flavoured; the next two digits identify the product, e.g. 09.02.10 = green tea (not fermented).

Sector share—Share of a sector in a reporting country’s total imports or exports.

U.S. total import in 2016 is US$2,248.2 billion. Motor cars 8703 (HS AG4) represents US$173.3 billion. Motor cars in 2016 therefore has a sector share of 173.3/2248.2 * 100 = 7.7 percent.

U.S. total import in 2002 is US$1,200.1 billion. Motor cars in 2002 represents US$115.8 billion. Motor cars in 2002 have a sector share of 9.7 percent.

Motor cars have therefore declined in total U.S. imports from representing 9.7 percent of total U.S. imports in 2002 to representing 7.7 percent of total U.S. imports.

Market share—Share of a partner country in imports or exports of a reporting country/region per sector or in aggregate.

U.S. total imports of motor cars (8703 HS AG4) in 2016 is US$173.3 billion. Germany in 2016 in U.S. import of motor cars represents US$22.2 billion. Germany has a market share in motor cars in 2016 of 22.2/173.3 * 100 = 12.8 percent.

Germany has a market share in 2002 in motor cars of 17.9/115.8 * 100 = 9.7 percent. Germany has therefore lost market share in motor cars between 2002 and 2016.

U.S. total import in 2016 is US$2,248.3 billion. Germany in U.S. total import in 2016 represents US$116.3 billion. Germany has a total market share in U.S. import in 2016 of 116.3/2248.3*100 = 5.2 percent. Germany has in 2002 a total markets share of 5.3 percent. Germany has therefore lost total market in U.S. imports between 2002 and 2016.


1 U.S. Department of Commerce, The effect of imports of steel on the national security, 11 January 2018. quantity adjustments in affected and related sectors. If the exemption is not made permanent, the impact on the affected sectors will likely be more severe.