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EU accuses China, Taiwan, South Korea of dumping

European steelmakers called on Monday for EU anti-dumping action against imports from China, Taiwan and South Korea, which they claim are flooding the European market at unfair prices.

The European steel and iron confederation Eurofer said it had filed two dumping complaints with the European Commission targetting cold-rolled, stainless flat steel from China, South Korea and Taiwan and galvanized products from China.

"Both complaints are filed on the basis of evidence showing that dumping of the products concerned is causing material injury to the European steel industry," Eurofer said in the statement released on Monday.

GRIEVANCES

A second complaint would be lodged next week against Chinese-made wire rods and a fourth complaint was also being prepared in the coming weeks targetting heavy plates, Eurofer director general Gordon Moffat said.

European steelmakers accuse producers mainly in China but also Taiwan and South Korea of selling their products in Europe at below the cost of production, in what is known as dumping.

As a result, European producers were losing market share and keeping facilities idle as they were undercut by up to 25 percent in the European market.

INVESTIGATION

After receiving a complaint, the Commission then has 45 days to decide whether there are grounds for launching an anti-dumping investigation, which could lead to corrective measures such as import duties.

Moffat was confident that the European Commission would prove sympathetic to the European industry's cause.

"It's clear that the Commission sees there is a problem with China and recognizes that probably the trade defense instruments are the only way to resolve the problem," he said.

TENSIONS

The case risks opening a new front in trade tensions between the EU and China and the Commission has said it would be careful to weigh both the interests of EU steel producers and consumers eager to buy cheaper steel.

The European engineering industry, which consumes two thirds of the steel produced in Europe, is opposed to action against imports and industry association Orgalime said it would study Eurofer's complaints.

"If increasing quantities of certain steel grades are finding their way into the European market, it is clear that this is because of demand in the EU is on the rise, while output is not able to keep up," Orgalime head Adrian Harris said.

"Our companies are therefore finding it ever more difficult to buy steel locally in the quantities and qualities they need at competitive conditions," Harris said.
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