December 04, 2008

EUROFER lodges AD complaint for Chinese and Turkish wire rods

It is reported that European steelmakers have launched a new anti dumping complaint over surging imports of wire rods from China and Turkey.

The European Confederation of Iron and Steel Industries said that wire rod imports from China and Turkey into the European Union rose more than 400% from 2004 to 2007.

Mr Gordon Moffat director general of EUROFER said that "The root cause of these dramatic, market distorting export surges is the economically irrational growth of steel capacities outpacing the growth of domestic steel consumption." Mr Moffat added that “Growth in capacity in China and Turkey had been fuelled by subsidies and driven by pervasive state intervention.”

EU has 45 days from the date of a dumping or subsidy complaint to decide whether to open an inquiry. After the start of a probe, the commission can impose provisional anti-dumping duties for six months and the EU's national governments, acting on a commission proposal can turn those measures into definitive 5 year levies at the same or different rates. The commission has nine months from the start of an investigation to decide on provisional measures. EU governments have 15 months from the beginning of a probe to impose 5 year anti dumping measures.

This action comes just before a China European Union summit dominated by growing trade friction. European trade chief Mr Peter Mandelson, who is taking part in summit in Beijing, has warned he might take action if China does not address its barriers to EU businesses. He has previously suggested he is sympathetic to the complaints of the European steelmakers.

EUROFER had asked the European Commission last month to impose anti dumping duties on imports of stainless steel cold rolled flat products from China, South Korea and Taiwan and on hot dipped galvanized sheet and strip from China.