Key Issue: European Steel Industry Seeks Protection from Rising Imports
The European Steel Association (Eurofer) has urged the European Commission to launch an anti-dumping investigation into hot-dipped galvanized (HDG) steel imports from Vietnam and India. The move comes as Europe faces growing concerns about the influx of cheap steel, with industry experts predicting that a formal investigation could soon be initiated, particularly targeting Vietnamese imports.
Surge in Vietnamese and Indian HDG Imports
Vietnam’s HDG Exports to Europe on the Rise
Vietnam’s HDG shipments to the EU market have surged dramatically, with monthly imports averaging over 100,000 tons between January and July 2024. This marks a significant jump from approximately 60,000 tons per month in 2023, highlighting the growing impact of Vietnamese steel on the European market. This uptick has raised alarms among European steel producers, who argue that these imports are disrupting local markets by flooding them with subsidized products.
Indian HDG Imports and Quota Limits
India, while facing quotas for HDG exports to Europe, has also seen a steady rise in shipments. Under current restrictions, India’s Category 4A HDG quota is capped at just below 55,000 tons annually, with shipments for this category exhausted quickly in recent months. Meanwhile, Indian 4B shipments, restricted to around 78,000 tons, remain less affected. As India’s export volumes continue to climb, Eurofer’s call for protective measures has gained momentum.
Parallel Trade Protections: HRC Safeguard Investigation
EU’s Ongoing Probe into Hot-Rolled Coil (HRC) Imports
Eurofer’s request for an anti-dumping probe into HDG imports mirrors the EU’s current investigation into hot-rolled coil (HRC) imports. Launched on August 8, the investigation focuses on HRC shipments from several key exporters, despite existing safeguard measures. These measures limit imports to 15% per supplier. The European Commission has intensified scrutiny since late September, with a possibility of imposing retroactive duties. Provisional anti-dumping measures for HRC imports are expected by March 8, 2024.
EU Trade Policy Faces Global Pressure
Europe’s Strategy to Protect Domestic Steelmakers
The EU’s ongoing trade investigations and measures against foreign steel imports are part of a broader strategy to shield its domestic metal industry from excess supply. The surge in imports, particularly from countries like Vietnam, India, and China, has intensified pressure on European producers. The imposition of anti-dumping duties on China’s steel exports, ranging from 17.2% to 27.9%, underscores Europe’s efforts to maintain a competitive balance within the market.
As the global steel supply chain continues to expand, Europe is tightening safeguards to ensure fair competition and protect its industrial base.
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