European stainless steel tariffs affect China and Taiwan

The European Union imposed tariffs of 25.2% on stainless steel from China and Taiwan. All this to reduce competition for EU producers such as Acerinox SA and Outokumpu Oyj. European steel stocks rose after this announcement. The charges penalize Chinese and Taiwanese exporters of cold-rolled flat products for the alleged practice known as dumping. This type of steel is used in many applications, from elevators and tanks to boilers and kitchen equipment.

The EU producers, which also include Acciai speciali Terni SpA and Aperam, suffered „material damage”. As a result of imports from China and Taiwan, declared the European Commission (EC), the commercial authority of the 28 EU states (based in Brussels).

The new tariffs for stainless steel

The new taxes are in force for six months and can be extended for five years. This fact may revive trade tensions between the EU and China regarding steel. After seven years since the European producers complained that some Chinese competitors introduced a range of products below the market price on the European market. Fact that determined a series of anti-dumping investigations.

One of these investigations covered cold-rolled stainless steel flat products. And it was closed in 2009, without the imposition of anti-dumping duties by the EU.

Anti-dumping duties against China vary from 24.3% to 25.2%, depending on the company. And the tariffs against Taiwan vary from 10.9% to 12%. Shares rose 7% for Outokumpu in Helsinki after the European Commission published its decision. Aperam gained 8.6% in Amsterdam and Acerinox rose by 5.2% in Madrid. The trade protection is the preliminary result of a dumping investigation opened in June by the Commission, which has six months to decide whether to turn the provisional duties into „definitive” measures valid for five years.

The investigation stems from a dumping complaint made in May 2014 by the European steel industry group Eurofer. This was done on behalf of producers who represent more than a quarter of the EU production of flat cold-rolled stainless steel products. Eurofer welcomed the introduction of anti-dumping duties, saying they are a necessary response to a wave of imports into the EU, which is linked to overcapacity on the Chinese market and which has prevented European industry from becoming profitable. Taiwan also has a problem of structural overcapacity.

Article source: http://www.dailysabah.com/money/2015/03/26/european-tariffs-on-stainless-steel-hit-china-taiwan