Global Fastener News

EU: No Provisional Duties on Chinese Steel Products

John Wolz

The European Union decided not to impose provisional anti-dumping duties on Chinese steel products, Dow Jones reports. But the EU will continue its investigation on whether to impose definitive anti-dumping duties.

The decision follows months of investigation on hot-dipped metallic coated iron or steel flat-rolled products from China.

The EU’s announcement comes a month after the European Commission issued an interim report on its investigation of alleged dumping of fasteners by Chinese producers (see FIN 8/11/08). The investigation started in November 2007. The report concluded “there are several crucial elements of the investigation which merit further careful analysis.”

Outstanding issues include verification that the production volume of the complainants exceeds the minimum 25% of EU production required for the complaint to be valid, reports Fastener & Fixing Europe editor Phil Matten. Some reports suggest that a significant complainant may have withdrawn support.

The report conclusion indicated that investigators would consider the significance of dramatic increases in raw material costs that have occurred since the investigation period, which covers October 2006 to September 2007.

The body of the 26-page report notes that imports from China to the EU increased by 180% between 2003 and 2007, resulting in market share increasing from 17% to 26%. EU producers share declined by 8.8% over a three period.

Preliminary calculations, although described as approximate and requiring further evaluation, showed “considerable dumping margins.” Market economy status has been denied to Chinese producers, so dumping calculations are made between Chinese export prices and the domestic price in an “analogue” country – in this case, India.

A final decision on the case must be published by February 8, 2009. �2008 FastenerNews.com and Fastener & Fixing Europe