European Commission confirms anti-dumping duty for Chinese coated steel

09/02/2018 12:00 - 570 Views

The European Commission confirmed Thursday anti-dumping duties of 17.2%-27.9% for corrosion-resistant coated steel from China. 

Despite much speculation, the final measures did not include any provision for the end use of the steel after producers raised concerns automotive grades were being used for other purposes. 

Therefore, traders are likely to continue to import certain grades of Chinese HDG when prices are competitive, although at a much lower volume than at the peak in 2016/2017.

Automotive grades are exempt from the duty following successful lobbying by the sector. 

In Northern Europe the use of Chinese steel by carmakers is limited with sources suggesting around 90% of steel is sourced locally.

However, in Southern Europe some producers import almost half of their steel requirements. 

During the investigation period, imports of related Chinese steel totaled 1.86 million mt, representing a market share of 20%. 

The EC noted that "in absolute figures imports from the PRC increased by 146% during the period considered" which increased the market share of "dumped imports" by 9.8%.

According to the document, the China Iron & Steel Association said that prices jumped 35% in the May-June 2017 period, suggesting imports were not dumped. 

But European steel association Eurofer argued this was mitigated by increased raw material costs.

The EC dismissed claims the European industry would be unable to fill the gap left by blocked Chinese imports, noting capacity utilization in Europe is around 79%. 

While the argument that steel service centers would be squeezed by higher domestic prices was rejected. 

"It was clarified that this important user segment is able to switch their sources of supply and pass on any additional costs to their customers. Therefore, their turnover, profitability and employment are not substantially threatened by the measure," according to the official filing.

Opponents of the duty also cited the potential ArcelorMittal/Ilva and Tata Steel/ThyssenKrupp mergers as risks to supply that would strengthen domestic pricing power. 

The EC pointed out that as yet the mergers do not apply but noted: "The basic regulation provides the possibility to address changes in circumstances where justified and accordingly initiate interim reviews."

The definitive duty applies to imports of flat-rolled products of iron or alloy steel or non-alloy steel; aluminum killed; plated or coated by hot dip galvanization with zinc and/or with aluminum, and no other metal; chemically passivated; containing by weight: 0.015% or more but not more than 0.170% of carbon, 0.015% or more but not more than 0.100% of aluminum, not more than 0.045% of niobium, not more than 0.010% of titanium and not more than 0.010% of vanadium; presented in coils, cut-to-length sheets and narrow strips.
Source: ​www.platts.com
Quảng cáo sản phẩm