Bloomberg reported that the European Union imposed five-year tariffs on steel pipes from China to help EU producers including Salzgitter AG compete with cheaper imports.

The duties as high as 71.9% punish Chinese exporters such as Changshu Walsin Specialty Steel Co for selling stainless-steel seamless pipes and tubes in the EU below cost, a practice known as dumping. The oil, natural-gas, electricity, chemical, construction and waste-incineration industries use the pipes and tubes.

Trade ministers from the 27-nation EU said in a decision in Geneva that European manufacturers including Germany Salzgitter Mannesmann Stainless Tubes have suffered “material injury as a result of dumped imports from China. The five-year levies follow provisional anti-dumping duties introduced in June at almost the same rates and will take effect after publication in the EU Official Journal by December 29.

According to the bloc Chinese exporters expanded their combined share of the EU market for stainless-steel seamless pipes and tubes to 18.4% in the 12 months through June 2010 from 10.5% in 2006.

The duties are the outcome of an inquiry that the EU opened in September 2010 after a dumping complaint against China by an industry group on behalf of producers that account for more than half of the EU’s output of the pipes and tubes. The five year levies will range from 48.3% to 71.9% depending on the Chinese manufacturer. The provisional duties range from 48% to 71.5%.

(Sourced from Bloomberg)