EU fast tracks trade actions on Chinese steel

Exclusive

12 December 2016

The European Union will investigate to determine whether Chinese producers of certain steels are selling into Europe at unfairly low prices, in its latest action against cheap Chinese steel imports. This move is seen to be a fast track measure prior to China attaining Market Economy Status on December 12^th 2016.

European steel industry has lobbied hard against granting China market economy status and requested  the government to conduct thorough investigations on a wide range of steel grades which have flooded EU and sold at a big loss due to Chinese overcapacity.

More than 4000 jobs have been axed in the British steel industry in the last year, as it struggles to compete with cheap Chinese imports and high energy costs.

G20 governments recognized in September that steel overcapacity was a serious problem and China was the price concern for the whole world due to its mega 400 million tonne of surplus capacity threatening the steel industry worldwide.

In October, the European Commission set provisional import tariffs of up to 73.7 percent for heavy plate steel and up to 22.6 percent for hot-rolled steel coming from China. Those investigations are set to conclude in April.

The Commission’s recent investigations confirmed that the Chinese products had been sold in Europe at heavily dumped prices. To provide EU companies with necessary breathing space, the Commission imposed duties ranging between 65.1% and 73.7% for heavy plates and 13.2% and 22.6% for hot-rolled steel.

The ongoing investigations are expected to bring out more deficiencies and gaps which EU will plug swiftly as per people close to the commission.