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EU imposes import duties on some Chinese steel to counter subsidies

Reuters  |  BRUSSELS 

By Foo Yun Chee

BRUSSELS (Reuters) - The European Union has imposed provisional import duties of as much as 28.5 percent on certain Chinese corrosion-resistant steels after an eight-month investigation found that the products benefited from unfair subsidies.

The Aug. 9 decision by the European Commission followed a complaint by association Eurofer whose members include ArcelorMittal, ThyssenKrupp and Tata Europe .

Imports of Chinese coated, corrosion resistant have surged 45 percent this year and make up 51 percent of total imports of the product, according to data cited by investment bank Jefferies.

"With Voestalpine, Thyssenkrupp and ArcelorMittal leading exposure to galvanised (corrosion resistant) steel, today's is a positive catalyst for boosting domestic market share and margins," Jefferies analysts said.

The has hit China, which produces half the world's steel, with anti-dumping duties on various products in recent years after companies cited illegal subsidies.

The executive body said anti-dumping duties were necessary to help producers in at least 15 countries, according to an announcement published in the bloc's Official Journal on Wednesday.

"It was provisionally concluded that the imposition of measures would contribute to the recovery of the Union industry by allowing price increases enabling the industry as a whole to return to a profitable situation," the Commission said in a statement.

The import duties, ranging from 17.2 percent to 28.5 percent, will affect Hesteel Group, Shougang Group, Shagang Group and several other companies.

The companies can challenge the decision at a hearing within 25 days.

(Reporting by Foo Yun Chee, additional reporting by Maytaal Angel; editing by Robert-Jan Bartunek and Jason Neely)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, August 10 2017. 17:25 IST