HS Code:
The Electroslag or Vacuum Arc Remelted category (commonly associated with HS Code 7222.20 or related codes under Chapter 72 for iron and steel products) includes high-purity steel and alloy products that undergo specialized remelting processes such as Electroslag Remelting (ESR) or Vacuum Arc Remelting (VAR). These processes are used to produce materials with superior mechanical properties, reduced impurities, and enhanced structural integrity, primarily for critical applications in aerospace, energy, defense, and medical industries. These products are often in the form of bars, rods, or ingots made of stainless steel, nickel-based alloys, or other specialty metals.
Total Trade Volume
Approximately $2.5 billion USD
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
$650 million USD
26% of total trade of total trade
Increasing
$500 million USD
20% of total trade of total trade
Stable
$400 million USD
16% of total trade of total trade
Increasing
$300 million USD
12% of total trade of total trade
Stable
$200 million USD
8% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
15% (imposed by certain developing countries on imports to protect domestic industries)
Lowest Rate
0% (under free trade agreements such as EU-US agreements or within customs unions like the EU)
Growing demand in aerospace and defense sectors
Increased production and trade of high-purity alloys for critical components like turbine blades and structural parts, driving trade volume growth in the US and EU.
2021-2023
Shift toward sustainable production methods
Rising adoption of energy-efficient remelting technologies and recycling of scrap metal, influencing trade patterns with a focus on environmentally compliant suppliers.
2022-2023
Increasing competition from emerging markets
Countries like China and India are scaling up production capacities, leading to price competition and potential oversupply in the global market.
2020-2023
The European Union introduced CBAM, which applies a carbon tariff on high-emission steel imports, including electroslag and vacuum arc remelted products, to level the playing field for EU producers.
October 2023
Non-EU exporters, especially from China and India, may face higher costs, potentially shifting trade flows toward CBAM-exempt countries or greener production methods.
The US government announced funding and incentives under the Inflation Reduction Act to boost domestic production of specialty steels, including those produced via ESR and VAR processes.
August 2022
This may reduce US reliance on imports from countries like Sweden and Japan, affecting global trade patterns in the medium term.
China has ramped up its production and export of vacuum arc remelted products, focusing on cost-competitive offerings for industrial applications.
March 2023
Increased competition in price-sensitive markets, potentially leading to trade disputes or anti-dumping measures by the US and EU.