EU slaps anti-dumping duties on Chinese corrosion resistant steel
Steel plant - Photo by Shymaa Rabea
(BRUSSELS) - The EU Commission imposed definitive anti-dumping duties on corrosion resistant steel from China Thursday, after a probe confirmed that Chinese producers were dumping the product on the EU market.
The results of the investigation have already led to the imposition of provisional duties from August 2017.
The measures that will be in place for the next 5 years range from 17.2% to 27.9%.
Corrosion resistant steel is mainly used in the construction industry, for mechanical engineering, in the production of welded pipes and tubes and in the manufacturing of domestic appliances.
The value of EU market for corrosion resistant steel is estimated for €4.6 billion, 20% of which has been supplied by Chinese producers.
The Commission's measures are intended to counter the downward pressure on sales prices that has been causing financial problems for EU producers, based mostly in Belgium, France, Poland and the Netherlands.
The steel sector is a vital industry for the European Union's economy as it occupies a central position in global value chains, and provides jobs for hundreds of thousands of European citizens.
The global surplus in steel-making capacity has driven down steel prices to unsustainable levels in recent years and had a damaging impact on the steel sector, as well as related industries and jobs.
The EU executive says it is using the full potential of its trade defence toolbox to ensure a level-playing-field for its producers and their ability to maintain jobs in the sector.
53 measures are now in place on steel and iron products, and these include 27 on products originating from China.
In March 2016 the Commission issued a Communication presenting a series of measures to support competitiveness of the EU steel industry.
Enhanced use of trade defence tools was one of the pillars of this strategy.
The Commission has also engaged in the Global Forum on Steel Excess Capacity that agreed last November on a package of policy solutions to tackle the pressing issue of global overcapacity in the steel sector.
The regulation is available in the EU Official Journal.