It is reported that European Union steelmakers withdrew a complaint about EU imports of stainless steel from China, Taiwan and South Korea, marking the second time in four months the economic slump has forced the industry to reverse policy.

EUROFER canceled a December 2007 complaint that Chinese, Taiwanese and Korean exporters sold cold rolled stainless steel flat products in the EU below cost.

In response, EU regulators will normally end the threat of tariffs against the three Asian countries by closing an investigation opened in February 2008.

Eurofer said that “It has become evident that the present economic and market crisis has rendered the anti dumping complaint on stainless steel cold rolled obsolete. In the light of this, Eurofer has decided to withdraw this case with a view to refiling at a moment which would give a sounder basis for measures which would more adequately address the injury coming from any new surge of imports.”

EUROFER added that “'It has also made the unprecedented commitment to use all the possibilities provided by the anti-dumping regulation for an early and accelerated imposition of measures in the event of a re-filed case provoked by a surge of imports.”

A spokesman for EU Trade Commissioner Catherine Ashton said she has noted the Eurofer decision.

In December 2008, EURFOER withdrew a dumping complaint covering galvanized flat steel from China, prompting the European Commission to end a related dumping probe last month.

The end of the galvanized and stainless steel cases removes two potential sources of EU China friction over steel trade. The EU is pursuing two other dumping inquiries involving wire rod and steel wires from China and has introduced provisional tariffs while examining whether to impose definitive five year levies.