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Experts: EU tariffs set to hit China's exports

By Yang Ziman | China Daily | Updated: 2016-11-16 07:48

The latest anti-dumping tariffs levied on Chinese steel products by the European Union could lead to a sharp fall in exports of China's seamless steel pipes and tubes to the region, according to a leading industry expert.

Wang Guoqing, director of the Lange Steel Information Center, said that the duties imposed on iron and steel seamless pipes and tubes, ranging from 43.5 to 81.1 percent, were very aggressive and may wipe out much of manufacturers' profit margin and lead to a sharp decline in exports to the EU.

The EU imposed provisional anti-dumping tariffs for six months on Chinese steel and iron products on Monday, after manufacturers in the bloc made numerous complaints about Chinese competitors allegedly exporting at unfairly low prices.

The European Commission, the EU's executive body, said that it would decide whether to make the anti-dumping measures definitive and extend the restrictions for a period of five years.

"Most seamless tube manufacturers in China are small scale. They feel powerless facing anti-dumping cases. But from earlier experience, companies that file appeal sometimes get much lower anti-dumping tariffs. Therefore, the Chinese government should provide consultancy to these companies to help them with the legal process," said Wang.

China's Commerce Ministry said that EU's decision, based on the fact that China's steel export prices are lower than those of other exporters to the region, was unfair.

"China offers competitive prices because it has large-scale steel production. The fact that its prices are lower than other exporters does not mean that it is dumping the products at prices lower than domestic costs," said Wang.

According to a report by 315.com.cn, a Chinese bulk commodity information and trading website, global output of seamless steel pipes and tubes dropped 14.6 percent year-on-year to 41.44 million metric tons in 2015.

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