By Paul Ploumis 31 Jul 2015 Last updated at 04:56:18 GMT
BRUSSELS (Scrap Monster): The European Union (EU) member nations have upheld the imposition of higher anti-dumping duty on imported cold-rolled flat stainless steel from China and Taiwan. The duties are being imposed, following a complaint lodged in May 2014 and a subsequent investigation launched in June.
According to sources, the EU will charge tariffs ranging from 24.3% to 25.3% for sheet coil and strip imports from China. An AD duty of 6.8% will be charges for stainless steel imported from Taiwan. Majority of the EU-28 member states had supported imposition of high tariff during the vote held last week. The commission has time until September 25th to impose the tariffs. Meantime, Eurofer has withdrawn a parallel complaint into alleged subsidies for Chinese stainless steel producers. The complaint was withdrawn on the grounds that there is no possibility of further tariffs being imposed, as the present tariff itself is at the highest level possible.
As per estimates, the combined shipments of cold-rolled stainless steel by China and Taiwan during entire year 2013 had totaled 620 million euros ($686 million). The imports from these countries together accounted for 17% of the overall market. Also, figures indicate that imports from these two countries more than tripled during the period from 2010 to 2014. Eurofer notes that the stainless steel market in the region has not witnessed corresponding growth during the period, thereby squeezing the profit margins of domestic producers.
The prominent Chinese companies those are likely to be affected by the tariffs include Shanxi Taigang Stainless Steel Co and Baosteel Stainless Steel Co. Taiwanese manufacturers -Tang Eng Iron Works Co and Yieh United Steel Corp may also get affected due to the decision.
Analysts believe that the considerably high tariffs may cut the imports from these countries substantially.