HS Code:
The category 'Of free-cutting steel, not further worked than cold-formed or cold-finished' (commonly classified under HS Code 7215.50) pertains to steel bars and rods made from free-cutting steel, which are designed for easy machining due to their high sulfur or lead content. These products are not further processed beyond cold-forming or cold-finishing, making them suitable for applications requiring precision components, such as in automotive and machinery manufacturing. This category is critical in industries where high machinability and cost-effective production are prioritized.
Total Trade Volume
Approximately $2.5 billion USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
$600 million USD
24% of total trade of total trade
Increasing
$450 million USD
18% of total trade of total trade
Stable
$400 million USD
16% of total trade of total trade
Increasing
$350 million USD
14% of total trade of total trade
Increasing
$250 million USD
10% of total trade of total trade
Stable
Average Rate
5.2% ad valorem
Highest Rate
12% (imposed by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Rising demand in automotive sector
Increased production of precision components drives trade volume, particularly in Europe and North America.
2021-2022
Shift towards sustainable steel production
Manufacturers adopting greener processes face higher costs but gain market access in eco-conscious regions like the EU.
2022
Growing competition from Asian producers
Lower production costs in countries like China and India are reshaping global supply chains.
2020-2022
The EU introduced CBAM to impose carbon taxes on steel imports, affecting free-cutting steel exporters to the region.
October 2023
Non-EU exporters may face higher costs, potentially reducing competitiveness unless they adopt low-carbon production methods.
Recent negotiations have led to reduced tariffs on certain steel products, including free-cutting steel, between the US and China.
March 2023
Increased trade flows between the two countries are expected, benefiting Chinese exporters.
Innovations in machining technology have increased demand for high-quality free-cutting steel in precision industries.
July 2023
Countries with advanced manufacturing capabilities, such as Germany and Japan, are likely to see sustained export growth.