EU initiates anti-dumping investigation on steel imports
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The European Commission has initiated an anti-dumping investigation concerning imports of certain hot-rolled flat products of iron, non-alloy, or other alloy steel originating in Egypt, India, Japan, and Vietnam. This action follows a complaint lodged by the European Steel Association (EUROFER) on behalf of the Union industry, alleging that these imports are being dumped in the EU market, causing injury to the local industry.
Background
The complaint was submitted on 24 June, 2024, under Article 5 of Regulation (EU) 2016/1036, which provides protection against dumped imports from non-EU countries. The products under investigation include specific flat-rolled products of iron and steel, with exclusions for certain stainless steel products, tool steel, high-speed steel, and others with specific dimensions and characteristics.
The allegations
The complaint alleges that producers in Egypt, India, Japan, and Vietnam are dumping hot-rolled steel in the EU market. Dumping occurs when a product is sold in a foreign market at a price lower than its normal value in the exporting country. This practice can harm domestic producers by undercutting their prices and depressing market share.
The complaint also alleges that there may be raw material distortions in India and Vietnam, where producers might benefit from government subsidies or other measures that give them an unfair advantage over European producers.
Impact on the EU industry
EUROFER has provided evidence indicating that imports from the concerned countries have increased in volume and market share, negatively impacting the EU industry's performance. The imported products' lower prices have led to reduced sales, decreased prices, and loss of market share for the EU industry, affecting its overall financial and employment status.
During the first four months of 2024, the EU imported a total of 169,000 tonnes (t) of finished flat steel from China, 173,000 t from Japan, 222,000 t from Taiwan, 229,000 t from South Korea, 263,000 t from Vietnam, 323,000 t from Turkey, and 404,000 t from India, as per data released by Eurofer.
Raw material distortions
The complaint also addresses raw material distortions in India and Vietnam. In India, iron ore, which constitutes a significant part of production costs, is subject to an export tax, leading to domestic prices lower than international benchmarks. Similarly, Vietnam's iron ore and coking coal are also subject to export taxes, resulting in price distortions.
Investigation procedure
The investigation will cover the period from 1 April, 2023 to 31 March, 2024, examining trends from January 2021 onward. Interested parties can submit comments on the complaint and the initiation of the investigation within 37 days of the notice's publication.
The European Commission may sample exporting producers and importers to manage the investigation within statutory time limits. Exporting producers and unrelated importers are invited to participate and provide necessary information. The investigation will determine whether the alleged dumping has occurred and assess the injury to the EU industry.
Potential consequences
If the investigation finds evidence of dumping and injury, the Commission may impose anti-dumping duties on imports from the countries concerned. Anti-dumping duties are additional tariffs imposed on imported goods to offset the unfair price advantage enjoyed by foreign producers.
The investigation will also examine whether imposing anti-dumping measures would be in the EU's overall interest. This will involve considering factors such as the potential impact on consumers and other industries that use hot-rolled steel.
Impact on steel industry
The initiation of this investigation is likely to be welcomed by the European steel industry, which has been facing challenges from competition from foreign producers. However, it could also raise concerns about potential price increases for consumers of hot-rolled steel. The final outcome of the investigation will depend on the evidence gathered by the Commission.
