European steel users would face supply shortage if the European
Union (EU) takes anti-dumping measures against importing steel from
China, an EU industry chief said Friday.
Earlier on Friday, the European Commission published its
decision in the EU Official Journal to launch an anti-dumping
investigation into certain hot-dipped metallic-coated iron or steel
flat-rolled products imported from China.
In an exclusive interview with Xinhua, Adrian Harris, secretary
general of European engineering association Orgalime said, "I am a
little bit surprised by the decision."
The organization represents national groups, including big steel
consumers such as Siemens, ABB and Alcatel-Lucent plus many smaller
firms.
Harris said the EU steel users need Chinese steel products to
meet their demand since the European market is now under-supplied,
causing high prices for consumers and record profits for local
steelmakers.
"The market needs to be adequately supplied," he said.
According to Orgalime, the EU's engineering industry uses about
two thirds of steel produced in Europe but has to rely on imports
due to a lack of supply from local steelmakers.
The relatively cheap Chinese steel has helped EU industry to
maintain competitiveness on the markets, it said.
The commission's investigation stemmed from a complaint raised
on Oct. 30 by the European Confederation of Iron and Steel
Industries (Eurofer), a Brussels-based industry body representing
major EU steel producers such as ArcelorMittal and
ThyssenKrupp.
Eurofer claimed massive volumes of Chinese steel products have
been dumped on the EU market at dumping margins of up to 40
percent, bringing down EU domestic prices by up to 25 percent and
making European steelmakers' life harder.
However, Harris said a preliminary analysis made by his
organization actually found no dumping in the case.
"We are not against fair competition, but it should be
fundamentally free and fair trade if there is no dumping," Harris
said, "We will wait and see."
The EU anti-dumping investigation normally takes no more than a
year, and in any case must be completed within 15 months, then the
EU governments have the final say on whether to impose definite
anti-dumping duties for five years.
During the investigation period, the commission may, within 60
days to nine months, impose provisional duties, which may last for
six to nine months.
Till now, Eurofer has filed three anti-dumping complaints
against steel imports from China. The European Commission is
expected to decide on whether to open investigation of the other
two in January.
(Xinhua News Agency December 15, 2007)
