The European Commission imposed definitive antidumping duties on corrosion resistant steel coming from China. The initiative comes after an investigation that confirmed Chinese producers were dumping the product on the EU market, a finding that already led to the provisional duties imposed in August 2017. The definitive duties will be in place for the next 5 years, and range from 17.2% to 27,9%.
The measures are aimed to counter the downward pressure on sales prices, due to the global overcapacity of steel production in recent years. Corrosion resistant steel is mainly used in the construction industry, for mechanical engineering, in welded pipes and tubes production and in the manufacturing of domestic appliances. The value of Eu market of the material is estimated for 4,6 billion euro, 20% of which has been supplied by Chinese producers. The global surplus in steelmaking capacity nowadays has driven down steel prices to unsustainable levels, causing financial problems for EU producers, based mostly in Belgium, France, Poland and the Netherlands, with damages on the steel sector for related industries and jobs.
Therefore the EU has decided to use the full potential of its trade defense toolbox, in order to ensure a level-playing-field for its producers and their ability to maintain jobs in the sector. On steel and iron products there are actually 53 measures in place, including 27 on products coming from China. In March 2016 the Commission issued a Communication presenting a series of measures to support the competitiveness of EU steel industry. In addition, the Commission engaged in the Global Forum on Steel Excess Capacity that agreed last November on an ambitious package of concrete policy solutions, to tackle the pressing issue of global overcapacity in the steel sector.