September 08, 2008

EC to investigate expiry review on steel tube fittings

Platts reported that European Commission has instigated an expiry review of anti dumping measures on a variety of South Korean and Malaysian iron & steel tube and pipe fittings.

The investigation will be concluded within 15 months of the notification, in accordance with EC guidelines. In view of the apparent numbers of parties involved, it may decide to apply sampling procedures to determine the likelihood of a continuation of recurrence of dumping and injury.

Current measures cover tube and pipe fitting, excluding cast fittings, flanges and thread fittings of iron or steel excluding stainless steel with a diameter not exceeding 609.6 mm. Imports to the EC were likely to increase, owing to a production surplus already in evidence in the countries. Furthermore, the removal of injury had come only as a result of existing measures and that should they be removed, injury would likely reoccur.

The review follows a request lodged on May 23rd 2007 by the defense committee of the steel butt welding fittings industry, a body representing more than 25% of product related producers in the EC. The committee claims the expiry of measures would likely result in a recurrence of dumping and injury to industry in the EC. This is based on a comparison of the normal value versus export prices for the product when sold for export to US, which is said to be significant.