Brussels, 02/12/2014 (Agence Europe) - On Tuesday 2 December, the European steel association -Eurofer - criticised an unfair trade practice from China which enables steel producers and exporters in China to benefit from tax rebates of 9-13% on the general Chinese export tax for steel (which is 17%), granted by Beijing to Chinese exporters of alloyed steel.
In order to obtain the most tax-beneficial classification of alloyed steel, Chinese steel producers add cheap alloy boron agent to steels specified by the customer as non-alloy quality, Eurofer states in a press release. Unlike the steel on the European market supplied by European steel producers, imported Chinese steel does not comply with European regulations and standards, especially on wire rod, rebar and bar, hot-rolled coil and heavy plate, Eurofer states.
“Not only does China promote exports of its excess steel production by targeted product tax advantages, but Chinese steel qualities also confuse the markets as Chinese producers exploit the export tax regime. The EU market surveillance authorities are now required to eliminate the risk of misleading use of the CE mark. Steel processors must be protected from being exposed to wrongfully declared qualities at the risk of serious economic disadvantages”, says Eurofer director, Axel Eggert.
According to Eurofer, steel exports from China are estimated to reach 85 million tonnes per year, up by 43% year-on-year. Chinese exports of steel products in which boron is typically added represent more than 50% of the total Chinese export volume. (EH)