EU increases tariffs for steel pipes from Belarus, China and Russia

The European Union has extended import tariffs on cast iron and steel welded pipes from Belarus, China and Russia for five years, saying they are being sold at unreasonably low prices.

The European Commission, which oversees the trade policies of the 27 EU countries, said on Monday in the official EU magazine that duties ranging from 10.1% to 90.6% would continue to apply.

Chinese manufacturers, including Zhejiang Kingland 002443.SZ, have the highest rate of 90.6%. The rate for producers in Belarus is 38.1%, while the Russian OMK group and the TMK TRMK.MM group pay 10.1% and 16.8%, respectively. The rest of the Russian companies, such as PJSC Severstal ChMF.MM, have tariffs of 20.5%.

The tariffs, introduced since 2008, follow a complaint from a group representing 50% of EU products. As EU producers, the investigation refers to ArcelorMittal MT.LU, Spain's Celsa Atlantic and Italy's Arvedi Tube Acciaio.

The Commission concluded that China, Belarus and Russia have significant spare production capacity and that dumping is likely if the measures are lifted.

Each of the three countries currently holds less than 0.5% of the EU market. In 2006/2007, their combined market share was 18.7%. Turkey, whose producers are not subject to duties, occupies 28% of the EU market.