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According to the latest announcement from the European Commission (EC) on May 16, 2024, the agency may impose anti-dumping duties on steel coils imported from China if it determines that these products are being dumped and causing damage to the local industry.
The EC stated that it has begun an anti-dumping investigation into flat-rolled steel products (tinplate) originating from China following a complaint filed by the European Steel Association (Eurofer) on April 2, 2024.
Eurofer provided evidence showing that the volume and market share of tinplate imports from China increased during the investigation period from April 1, 2023, to March 31, 2024. A price comparison chart supplied by Eurofer indicated a significant dumping margin in this case. According to Eurofer, the influx of cheap tinplate imports from China has severely harmed EU producers in the same sector. This harm includes shrinking profit margins, reduced production, capacity utilization, and market share, causing substantial losses for EU steel producers.
Eurofer reported that the EU industry lost a quarter of its sales volume from 2021 to 2023, while the market share of EU consumption captured by Chinese imports more than doubled during the same period.
Senior leaders of Eurofer stated that this situation has persisted for nearly four years, leading to Europe’s decision to initiate the investigation, which is not directly related to recent U.S.-China trade tensions.
China has not only intensified its production capacity in renewable energy but also in other goods in recent years, aiming to increase its global market presence. One such product is steel sheets sold at low prices, pressuring local producers in target markets to lower their prices, reduce profits, or even incur losses on each order sold.
Given that steel is an essential industry in construction and many other sectors, pressuring domestic steel producers in Europe could have severe consequences, impacting employment and increasing dependency on Chinese products.
The investigation is expected to conclude within a year but not later than 14 months. According to the EU announcement, provisional measures may be applied no later than seven months from May 16, 2024. The EU will consider trends related to damage assessment from January 1, 2020, onwards.
With the close relationship between the U.S. and European Union countries, experts view this EC move as part of a joint U.S.-EU effort to curb China’s expansion. Recently, the U.S. raised tariffs from 25% to 100% on electric vehicles, from 7.5% to 25% on lithium batteries for electric vehicles, from 25% to 50% on photovoltaic components used in solar panels, and from 0% to 25% on certain critical minerals from China. The import tariff rate for some steel and aluminum products will be 25%.
The U.S. also maintains tariffs on $300 billion of Chinese products imposed in 2018 under former President Donald Trump. In response, China expressed dissatisfaction with the U.S. decision and promised corresponding retaliatory measures, accusing the U.S. of politicizing economic decisions and pledging to “take all necessary measures to protect its rights and interests,” such as banning some U.S. companies from conducting import-export activities related to China, including selling weapons to Taiwan and prohibiting new investments in China.
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