The European Commission has launched an investigation into alleged dumping of stainless steel into the European Union by Chinese and Taiwanese producers.
EUROFER filed a complaint in mid May on behalf of companies representing a major portion of the Community production. Imports of stainless steel products ex: super duplex stainless steel flanges from China and Taiwan were sold at dumped prices and cause significant injury to the EU stainless steel industry.
Quantities of stainless steel cold rolled flat products from China and Taiwan into Europe have been rising at an alarming rate in 2013 although EU consumption remained rather stable. Their combined market share has grown by 65% between the years 2010 and 2013 (year 2013 being the investigation period) and this expansion went on in spring (Q1/14) at the expense of the EU producers. The market share of China and Taiwan was even in excess of 14% in the month of April 2014.
Mr Gordon Moffat DG of EUROFER welcomed the European Commission’s initiation against imports of stainless steel cold rolled flat products (SSCR) from China and Taiwan. Mr Gordon Moffat DG of EUROFER said that “During the last three years, the European producers of stainless steel flat rolled products carried out significant restructuring operations to reduce over-capacities, improve their performance and maintain their competitive edge in the global market. But over the same period China has built up huge capacities that are economically unjustified. Their increased output cannot be absorbed domestically. As a result they are flooding the markets which are still unprotected like the EU. Taiwan has also a structural over capacity problem and excess production which they download on export markets, particularly in Europe.”
Mr Moffat said that “This is no longer sustainable. The imports of SSCR from the two countries, China and Taiwan, significantly undercut the prices of the EU producers and prices from other third countries. The complaint shows that the dumping margin from these two countries reaches 20 per cent. Both from the volume and pricing aspects, the EU industry is suffering material injury as a result of these dumped imports and the causal link is obvious. Anti Dumping measures on imports of SSCR from PR China and Taiwan will be in line with the European Commission’s Steel Action Plan, ensuring fair conditions of competition and taking action against unfair trade practices.“
Source – Strategic Research Institute