Centrum Stosunków Międzynarodowych - 16 August 2016: EU to upgrade steel trade resistances as imports surge

The European Commission is required to further beef up its steel trade defenses, perhaps as early as October, industry leaders say, as a worldwide trade war in the alloy intensifies and imports keep flooding into the axis. The Commission has ramped up trade defenses over the past year, slapping anti-dumping tariffs on products like reinforced bar, cold-rolled carbon steel and cold-cast stainless steel, running between 18.4 and 25.3% for imports from China. Admitting that, carbon steel imports in this year rose to 21% in May. European Union data shows that China now representing 27 percent of total imports, while stainless steel imports rose 17 percent over the period.

“The European Commission knows they’ll have to act because too many other agents of this planet are fencing off borders,” Voestalpine Chief Executive Wolfgang Eder said in a conference call with reporters.

China, which produces half the world’s 1.6 billion tonnes of steel, has scrambled to reduce its estimated 300 million tonne overcapacity, and rising costs have encouraged its forms to ramp up production for export.

Countries from Asia to the Americas disagree. The US, in the midst of an election year, has slapped tariffs of up to 450 percent on some Chinese steels. However, industry spokespeople say they are not advocating US-style protectionism, but that the EU’s renewed determination to protect steelmakers is encouraging.

The crunch point could come in October, when the EU might cut the time frame for imposing duties from nine to seven months, and water down or scrap the ‘lesser duty rule’, which severely limits tariff levels.

“There’s been a shift in understanding amongst EU members which we welcome, but we would call on them to do more to efficiently and effectively defend the industry,” a spokesman for European steel association Eurofer said.
Industry representatives expect a positive ruling, adding that besides the renewed EU drive to protect steelmakers, Britain’s vote in June to leave the EU should free the bloc’s hand.