Business World

Monday 18 December 2017

EU slaps duty on Chinese steel imports after subsidies probe

Imports of Chinese-coated, corrosion-resistant steel have surged 45pc this year and make up 51pc of total EU imports of the product, according to investment bank Jefferies. Stock image
Imports of Chinese-coated, corrosion-resistant steel have surged 45pc this year and make up 51pc of total EU imports of the product, according to investment bank Jefferies. Stock image

Foo Yun Chee

The European Union has imposed provisional import duties of as much as 28.5pc on certain Chinese corrosion-resistant steels after an eight-month investigation found that the products benefited from unfair subsidies.

The European Commission decision followed a complaint by steel association Eurofer whose members include ArcelorMittal, ThyssenKrupp and Tata Steel Europe.

Imports of Chinese-coated, corrosion-resistant steel have surged 45pc this year and make up 51pc of total EU imports of the product, according to investment bank Jefferies.

"With Voestalpine, Thyssenkrupp and ArcelorMittal leading exposure to galvanised (corrosion resistant) steel, today's news is a positive catalyst for boosting domestic market share and margins," Jefferies analysts said.

The EU has hit China, which produces half the world's steel, with anti-dumping duties on various steel products in recent years after EU companies cited illegal subsidies.

The EU executive body said anti-dumping duties were necessary to help producers in at least 15 EU countries, according to an announcement published in the bloc's Official Journal.

"It was provisionally concluded that the imposition of measures would contribute to the recovery of the Union industry by allowing price increases enabling the industry as a whole to return to a profitable situation," the Commission said in a statement. The EU import duties, ranging from 17.2pc to 28.5pc, will affect Hesteel Group, Shougang Group, Shagang Group and several other companies.

The companies can challenge the European Unioin's decision at a hearing within 25 days. (Reuters)

Irish Independent

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