EU approves higher AD duties on stainless steel imports

European Union member states supported the introduction of higher anti-dumping duties on imports of cold rolled stainless steel from China and Taiwan. Responsibilities are imposed following a complaint filed in May 2014 and a follow-up investigation launched in June.

The European Union will levy duties ranging from 24.3 percent to 25.3 percent on imports from China of stainless steel sheets in coils and strips. A duty of 6.8 percent will be applied to stainless steel imported from Taiwan. Most EU member states supported the imposition of a higher fee in a vote last week. The European Union Commission expects to introduce new tariffs by September 25 this year. Meanwhile, Eurofer has withdrawn a complaint about alleged subsidies for Chinese stainless steel producers. The complaint was withdrawn on the grounds that there was no room for further tariff increases, as the current tariff is at the highest level.

The industry estimates that combined shipments of cold rolled stainless steel from China and Taiwan for the entire 2013 were € 620 million ($ 686 million). Co-imports from these countries accounted for more than 17 percent of the European Union's total stainless steel market. In addition, the data shows that imports from these two countries more than tripled between 2010 and 2014. Eurofer notes that the stainless steel market in the EU region has not experienced corresponding growth during this period, thereby squeezing the profits of domestic producers.

The list of prominent Chinese companies that will be affected by tariffs include: Shanxi Taigang Stainless Steel Co and Baosteel Stainless Steel Co. Taiwanese stainless steel producers Tang Eng Iron Works Co and Yieh United Steel Corp may also be affected by the decision.

Analysts believe that higher tariffs could significantly reduce stainless steel imports from these countries to the EU and boost profits for local producers. ...