Steelmakers from Europe and North and South Americahave called on Chinato stop subsidising its steel industry and end other government measures whichthey said give them an unfair advantage over competitors.

"China's Iron and Steel IndustrialDevelopment Plan and other government actions are disrupting and distorting theglobal steel market," the steelmakers said in a joint statement datedApril 15 and released on Thursday.

The groups included European steelindustry association Eurofer, the American Iron and Steel Institute (AISI), theCanadian Steel Producers Association, the Latin American Iron and SteelAssociation and the Steel Manufacturers Association.

The statement was included incomments submitted to the Chinese government.

Steelmakers have been hard hit bythe global recession, which has resulted in extended output cuts, plantshutdowns, worker lay-offs and the freezing of investment plans.

China is home to about 700steelmaking companies and is the world's biggest steel producer.

The groups urged China to endraw material export restrictions and to stop manipulating its value-added taxsystem and currency. They also said China should set tougherenvironmental standards and enforce them more vigorously.

Eurofer filed an anti-dumpingcomplaint last year against imports of cold-rolled flat stainless steel from China with theEuropean Commission. It dropped the complaint last month, citing the economicdownturn.

Edited by: Reuters

By: Reuters

16th April 2009

Source:www.engineeringnews.co.za