Date
22 October 2019
China has been accused of flooding the European market with cheap, subsidized steel. Photo: Reuters
China has been accused of flooding the European market with cheap, subsidized steel. Photo: Reuters

EU opens anti-dumping probe on China, Indonesia hot-rolled steel

The European Commission has opened an anti-dumping probe into hot-rolled stainless steel from China and Indonesia following complaints that the two Asian nations are flooding the European market with cheap, subsidized steel.

Separately, the Commission said on Thursday that it has imposed provisional anti-dumping duties on Chinese steel road wheels, used for motor vehicles, of up to 66 percent, accusing Chinese exporters of selling them at below cost, Reuters reports.

“Provisional measures should be imposed to prevent further injury being caused to the Union industry by the dumped imports,” the Commission said.

The Commission said in its Official Journal that China’s market share in the bloc has last year doubled compared with 2015.

European industry accuses China and Indonesia of channeling government funds and offering other benefits to local steelmakers to export to Europe and win a greater share of the market.

If allowed to continue, cheap Chinese and Indonesian hot-rolled stainless steel means “further injury will crystallize from this situation of volume and price pressure,” the Official Journal said.

The accusations against China in particular are part of broader trade tensions with the European Union, which accuses Beijing of breaking World Trade Organization rules.

China, the world’s largest stainless steel producer, churned out 26.71 million tons of stainless steel products in 2018, up 2.4 percent from a year ago.

Even before US tariffs on Chinese steel in 2018, Beijing has been accused of diverting more exports to Europe and creating massive oversupply.

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