The European Steel Association (EUROFER) has commented on the European Commission’s proposal for a minimum import price (MIP) on hot rolled flat steel, warning that it allows for the continuation of dumping and, as a consequence, promotes overcapacity in exporting countries. The European Commission is currently conducting an antidumping duty investigation against Brazil, Iran, Russia and Ukraine, while it has decided to exclude Serbia which was initially subject to the same investigation.
“A single MIP is completely unsuited to hot rolled steel, which is a highly diversified product. It comes in over a thousand, very different, grades and types - each with their own costs and prices. Moreover, the raw materials that go into hot rolled steel fluctuate significantly in cost, leading to extreme price volatility in this steel product segment. A ‘one-size-fits-all’ MIP on this product simply will not stop dumping,” said Axel Eggert, director general of EUROFER.
According to EUROFER’s statement, the proposed €472/mt MIP is significantly below the average price level, while prices have risen recently spurred on by much higher raw material prices rather than by margin growth. The MIP distorts competition in the market, as it will define a price benchmark in the hot rolled steel market. EUROFER suggested that antidumping duties, rather than MIPs, should be deployed in this case.
“The Commission has successfully begun to turn the tide of Chinese dumping using ad valorem duties on similar products - and yet has seemingly decided to leave the door open for other dumpers of steel. The Serbian producer - recently acquired by a state-owned and state-controlled Chinese steel group - has even been excluded from measures, an incomprehensible choice that invites a Trojan horse into the EU market,” said Mr Eggert.