Brussels, 29/10/2007 (Agence Europe) - Eurofer, the European Confederation of Iron and Steel Industries, lodged an official complaint with the European Commission on Monday 29 October, asking it to levy anti-dumping duties on imported steel originating from China (see EUROPE 9519). Once a complaint has been lodged with the Commission, it has 45 days to decide whether an investigation is warranted. After an investigation, the Commission has six or nine months to take provisional measures, and fifteen months for definitive measures. European steelmakers have high hopes that the Commission will meet their request, particularly as EU Trade Commissioner Peter Mandelson has recognised that Chinese steel production is far too high.
Gordon Moffat, Eurofer Director General, told this newsletter that before lodging the complaint with the Commission, European steelmakers had tried to arrange things with the Chinese at a steel contact group, but this had come to nothing. Eurofer is calling for surcharges to halt mass imports from China at too low a price. In 2007, the EU's finished steel imports from China are expected to total 12 million tonnes, compared with only 5 million tonnes in 2006 and a million tonnes in 2005, explained Moffat. He added that China has hugely increased its production capacity through huge state subsidies. Eurofer believes Chinese overproduction has destroyed the Chinese market and led to a collapse in local prices, driving the country to export massively to markets still doing well, including the EU, where prices remain high. These mass imports of Chinese steel have led to a 45% slump in EU order books for stainless steel cold sheets used for building and engineering, leading Eurofer to take action.
Two complaints were lodged on 29 October, one concerning imports of stainless cold sheets from China, Taiwan and South Korea (through the domino effect, both Taiwan and South Korea have recently increased their exports to the EU) and one on galvanised steel imports from China. In both cases, Eurofer wants supplementary duties of 40% to be levied to stem steel imports from the countries in question.
Moffat said that Eurofer may lodge a complaint against China next week concerning China's exports of wire bar, a third type of product, and may even lodge a fourth complaint at a later date against imports of heavy plate from China, but Eurofer is still gathering evidence concerning heavy plate.
Earlier this month, a spokesperson for Peter Mandelson said that the final decision would take account of several factors and not just the interests of steel producers. The spokesperson said it was a complex issue where there were many interests at play, including many steel import users which did not want anti-dumping duties levied. (L.C.)