Press releases

Slackening China coil imports ease pressure on EU trade case - 28 March 2012

The near disappearance of Chinese hot rolled coil imports from the European market means that there is little risk of the European Union applying countervailing duty measures on imports of HRC or cold reduced coil, industry experts told Platts Steel Business Briefing on Tuesday.

Chinese steel exporters are offering at $640-650/tonne FOB, and effectively remain out of the EU market, a source at a European steel mill told Platts SBB. The dollar/euro exchange rate and relatively low prices mean there is no premium for imports.

However, the recent disappearance of Chinese imports means that, even if the EU decides that Chinese exports are being unfairly subsidised, this is unlikely to mean duties being imposed on HRC or CRC imports. “Without an injury [to EU producers], it is not relevant,” an industry analyst said.

However, if the European Union upholds the complaint, its highly technical decision on exactly how subsidies have been allocated along the value chain in China could well have implications for other higher value-added products. “Soft loans to support blast furnace capacity expansions, for example, mean cheap substrate could be a hidden subsidy,” the expert concluded.

Producers of other high-value added products, such as tinplate, have seen margins come under pressure and market share eroded as Chinese mills have rapidly increased their EU market share in recent years.

The EU is currently conducting separate AD and CVD investigations into organic-coated imports from China.

 

Steel news in English | 中文 | Português | Español | Deutsch | Italiano | Русский

© Copyright Platts 2021, all rights reserved.
Back to top  Back to top