SteelOrbis Shanghai
In response to the antidumping petition filed by the European Confederation of Iron and Steel Industries (Eurofer) to the European Commission (EC) against China's stainless steel cold rolled plates and HDG, the China Iron and Steel Association (CISA) and the China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC) have both issued statements regarding the issue. They both state that Eurofer's accusation that the Chinese steel industry has obtained government subsidies and conducted dumping sales is groundless. Both the CISA and CCCMC declare that the Chinese steel industry is firmly opposed to the Eurofer petition, and they ask the EC not to initiate an investigation, in consideration of long-standing relations between China and Europe.
CISA officials said that ArcelorMittal's recent announcement at the 41st annual conference of the International Iron & Steel Institute indicates that demand in the European market for long products and plates has been increasing considerably. At the conference in question, ArcelorMittal said that by 2012 it would invest $1.3 billion per annum in European flat mills. This year it has invested a total of $2 billion; $1.3 billion of which was for flats production, $0.4 billion for longs, $0.2 billion for stainless steel production and $0.1 billion for marketing and services. Furthermore, ArcelorMittal is to invest another €0.2 billion to modernize and expand its Eisenhuettenstadt and Bremen mills in Germany and to build a new galvanized production line with a capacity of 0.4 million mt at Eisenhuettenstadt.
Meanwhile, the CISA also declared that EU steel customers including the European Engineering Industries Association (Orgalime), the British metal processing association CBM and Swedish home appliance producer Electrolux are dissatisfied with Eurofer's move. The CISA went on to say that the evidence proved that exports of Chinese steel products to Europe are determined by the state of supply and demand in the EU internal market. It added that exports of Chinese steel products have not caused damage to the EU steel industry, and at the same time has benefited downstream customers in the EU.
Since the Chinese and European steel industries have had a good long-standing partnership, the CISA said that the Chinese steel industry is willing to solve trade problems between the two sides via negotiation. The CISA went on to say that, though Eurofer has already filed its antidumping petition, the Chinese steel industry would still like to establish in-depth communication regarding the steel trade in order to clear the air and thereby allow for smooth future development. If the EC decides to start an investigation, the CISA said that in this event it will work with the interested enterprises to prepare an active response.
The CISA also declared that, if the EU executes anti-dumping measures against Chinese steel products, the interests of the various parties will be damaged. Thus, the CISA said it hopes that Eurofer will reconsider its decision and that it also hopes that the EC will examine the Eurofer petition from the point of view of the overall interests of Europe.
The CCCMC, in its turn, pointed out that in recent years both the output and exports of Chinese steel products have increased, driven by Chinese economic development and increasing demand for steel products from interested steel importing countries. Since its reforms and its opening up to the outside world, Chinese steel enterprises have been carrying out their production and other operations completely under market-oriented conditions. The CCCMC said that Chinese steel products were competitive due to the relatively low production costs and management costs, rather than due to government subsidies.