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EU tariffs on Chinese steel called unfair

By Yang Ziman | China Daily Europe | Updated: 2016-11-20 09:10

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, says the duties imposed on iron and steel seamless pipes and tubes, ranging from 43.5 to 81.1 percent, are 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 Nov 14 after manufacturers in the bloc lodged numerous complaints about Chinese competitors allegedly exporting at unfairly low prices.

The European Commission, the EU's executive body, says it will decide whether to support the anti-dumping measures and extend the restrictions for five years.

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

China's Commerce Ministry says the 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 those of other exporters does not mean that it is dumping the products at prices lower than domestic costs," says Wang.

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

yangziman@chinadaily.com.cn

 

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