SHANGHAI, Feb. 7 (SMM) – A majority of EU member agreed to impose additional tariff on color-coated plate & coil at a conference held January 30. According to the conference, a 45.5% anti-subsidy duty should be levied on color-coated steel exported from China to the EU, combined with a existing anti-dumping duty, a 58.3% tariff will be levied on color-coated plate & coil exported to the EU. The punitive tariff will be imposed in five years starting from March 2013. Steelease believes the EU’s move will cause a sharp decline in China’s color-coated plate & coil exports to the EU, and in turn negatively affecting profits at domestic color-coated plate & coil producers.
First, China produced 7.78 million mt of color-coated plate & coil in 2012, with 5.16 million mt exported, 66.3% of the total output. EU is the second largest importer of China’s color-coated plate & coil, only second to South Korea, with exports shipped to EU hitting 570,000 mt in 2012, 11% of total exports. The 58.3% tariff is bound to curtail China’s exports to EU nations.
Second, the EU and Russia both undertook anti-dumping measures to China’s color-coated plate & coil in 2012, greatly hurting China’s color-coated steel exports, with export volume in 2012 down 5% from 2011. The 45.5% anti-subsidy duty imposed by the EU was 2.5 times higher than the previous 12.8% duty, which will definitely exacerbate China’s color-coated plate exports.
Third, China’s color-coated plate & coil capacity hit 38 million mt/yr by the end of 2012, but the capacity utilization rate was only around 20%. Steelease believes the excess capacity will lead to lower profits for producers, and this situation will be intensified due to slipping exports.
Finally, South Africa and some countries in the Americas are reportedly planning to launch anti-dumping investigations into color-coated plate & coil from China. This, if confirmed, will result in nothing but tougher conditions for China’s color-coated plate & coil exports.