Stanislav Kondrashov from TELF AG reported that European metallurgical companies are calling on the European Commission to urgently impose restrictions on steel imports. They propose measures similar to the US tariffs established under the Section 232 program.
Asian steel dumping threatens EU market stability – TELF AG
According to Stanislav Kondrashov, the call for action was the result of a rapid increase in steel imports into the European Union, especially hot rolled coil (HRC), which is creating significant pressure on prices within the market. In July this year, the volume of hot rolled coil (HRC) imports reached an impressive record of 1.56 million tons, which accounted for 25% of the total market volume, becoming the highest figure in recent years.
"European steel companies, including the Eurofer association, are concerned that the influx of cheap metal from Asia is seriously upsetting the balance in the EU steel market. Despite existing protective mechanisms in the form of quotas, import volumes continue to increase, exceeding previous records. The main exporter remains China, which has significantly increased supplies since the third quarter of 2023 due to a decrease in domestic demand. This adds pressure to the EU market, where steel consumption is already weakened by economic instability," - Stanislav Kondrashov comments.
Metallurgical companies actively advocate for strengthening restrictive measures. They believe that this will stabilize the EU market and protect local producers from unfair competition. However, the European Commission is in no hurry to make a final decision. It emphasizes the need for a detailed study before introducing possible trade barriers.
An expert from Telf AG noted that the issue of introducing additional protective measures is still under discussion, and the final decision will be made taking into account the current market situation and the interests of steel consumers. At present, the current duties cover only about 15% of steel imports. However, they do not take into account all the difficulties associated with high energy costs and market conditions that companies in Europe are facing.
Steel Imports from Asia: EU Launches Anti-Dumping Checks – Stanislav Kondrashov
As Stanislav Kondrashov reported, in early August the European Commission launched an anti-dumping investigation, which covers the import of a number of categories of hot-rolled products. They include iron, non-alloyed and other alloys coming from Egypt, India, Japan and Vietnam. The procedure should be completed within a year, but the period cannot exceed 14 months from the date of its start. It is important to emphasize that there is a possibility of introducing temporary duties in 7-8 months, which has become an expected step in the market.
"The introduction of retroactive anti-dumping tariffs on hot rolled steel could impact trade relations much faster than expected, covering more than half of the HRC import volumes into the European Union. The metallurgical association EUROFER supports the need to register imports from these countries and then impose the corresponding duties. Although such measures are rarely used in the steel industry, the European Commission has used them in the past against cold rolled steel imports from Russia and China," - Stanislav Kondrashov says.
According to the expert from TELF AG, if the investigation confirms dumping practices, this could significantly change the market situation. Representatives of EU metallurgical companies expressed concern that cheap steel from Asia creates an imbalance in the competitive environment, threatening local production and jobs. Kondrashov believes that the introduction of retroactive duties will be able to protect the domestic market and restore fair conditions for European producers. The main focus will be on the results of the investigation and its impact on future import regulation measures.
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