Anti-dumping measures against Chinese steel and Russian
The European Union has imposed definitive duties for five years on imports of rolled steel from China and Russia up 22.1% and 36.1%, respectively, to sell the material below the cost price production in Europe, a practice known as ‘dumping’ practice.
For the first time tariffs will apply retroactively to imports registered two months before the adoption of interim measures on 12 February.
Tariffs of between 19.7% will be applied to 22.1% for rolled steel imports from China and between 18.7% and 36.1% for Russian companies.
Rolled steel used for industry in general, but also for the industry of the automotive industry and the construction sector.
The European Commission opened an investigation ‘dumping’ to determine whether this product from China and Russia was being sold in the EU below cost price in May 2015 following a complaint by the European industry.
Imports from the countries concerned between 12 December 2015 and 12 February this year when dumping measures were applied, rose to 165,000 tons.
The mean volume of imports from China grew by 48% and 25% in the case of Russia between June 2015 and January 2016 (721,386 tons of 578,272 tons of China and Russia). As regards prices, the EU executive has determined that the monthly average prices of imports from China fell 13% and 12% of Russia during the eleven months of the period of investigation and that the fall in the price of raw materials does not justify this price decline. Undercutting stood at 7% during the investigation period and rises to 14% in the period subsequent to it, according to data from Brussels.
The EU has spent months demanding China to reduce its overproduction of steel, which is hurting European industry and indeed has reinforced the number of measures taken to protect defense market. Around 37 of these measures over hundred of them taken to protect the ‘dumping’ European industry affect the steel sector, of which 15 ‘punish’ imports from China. The EU imposed in late July a definitive duty for five years of between 18.4% and 22.5% on imports of rebar for construction from China by ‘dumping’.
The EU is authorized to apply tariffs on products from third countries in response to dumping if it is shown following an investigation that these products entering the European market at prices below cost are harming European industry, as the rules of the World Trade Organization (WTO).
These measures will benefit non-Chinese steel companies, mainly ArcelorMittal sector.