EU imposes anti-dumping duties on cheap Chinese steel, angers Beijing | world-news | Hindustan Times
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EU imposes anti-dumping duties on cheap Chinese steel, angers Beijing

China is the world’s top producer and consumer of steel. To protect Europe’s steel market, Chinese exports will now be taxed with duties ranging from 18.1 percent to 35.9 percent.

world Updated: Apr 06, 2017 19:51 IST
Chinese steel

Chinese national flags are flying near a steel factory in Wu'an, Hebei province in China.(REUTERS)

The European Commission has imposed anti-dumping duties on steel products from China to stop them flooding Europe’s struggling steel market, a move angering Beijing.

The Commission said Thursday that an investigation has confirmed that Chinese hot-rolled flat steel has been sold in Europe at dumping prices.

Acting on behalf of the 28 EU countries, the European Commission has set final duties of between 18.1 and 35.9 percent for five years for producers including Bengang Steel Plates Co, Handan Iron & Steel Co and Hesteel Co.

This compared with provisional rates imposed from October of 13.2 to 22.6 percent following a complaint lodged by European steel association Eurofer on behalf of EU producers ArcelorMittal, Tata Steel and ThyssenKrupp.

China’s commerce ministry said it was highly concerned by the decision and urged the EU to “correct its mistake”, adding it would take “necessary measures” to protect its companies.

The EU has already imposed duties on a wide range of steel grades to counter what EU steel producers say is a flood of steel sold at a loss due to Chinese overcapacity.

China, the world’s top producer and consumer of steel, said early last year it would shut as much as 150 million tonnes of annual production capacity over the next five years, although capacity actually rose in 2016.

G20 governments recognised in September that steel overcapacity was a serious problem. China has said the problem is a global one

The Commission said on Thursday that the measures should shield EU steel makers from the effects of Chinese dumping.

The Commission also said that it had decided not to impose provisional duties on the same product from Brazil, Iran, Russia, Serbia and Ukraine, although the investigation of imports from these countries would continue for another six months.

“The decision not to impose provisional measures for imports from Brazil, Iran, Russia, Serbia and Ukraine does not prejudge the final outcome of that investigation,” a Commission spokesman said.