Ezz Steel to challenge Europe’s anti-dumping duties on flat steel imports
Other countries affected by the anti-dumping duties would include Japan and Vietnam.
In June 2024, the European Commission initiated an anti-dumping investigation into hot-rolled flat steel imports from Egypt, Vietnam, Japan and India following a complaint by regional steel association Eurofer.
On Monday March 17, the Commission released a preliminary decision that imports of hot-rolled flat steel product imports from Egypt, Vietnam and Japan would become subject to provisional duties of 6.9-33%.
India was exempted from the measure after the investigation found that no dumping or unfair exports to Europe had taken place during the period under investigation, which was from April 1, 2023, to March 31, 2024.
The products that will be affected, according to the announcement, included certain flat-rolled products of iron, non-alloy steel, and other alloy steel with the provisional tariffs coming into effect starting April 7, Fastmarkets heard.
Proposed duties
The Commission’s finding meant that Egypt would become subject to a 15.6% tariff, while Vietnamese producer Formosa Ha Tinh would become subject to a 12.1% tariff and Japan-origin material would be subject to rates of 6.9-33% depending on the producer.
Ezz Steel is a major exporter of hot-rolled flat steel products into Europe and intended to launch an appeal regarding the provisional duties, with a delegation from Egypt’s Ministry of Investment expected to meet EU representatives to discuss the proposal, Fastmarkets has heard.
Steel producers in the various countries affected by the provisional duties will have a three-week window, until April 4, in which to submit objections.
Effect on Ezz Steel
Ezz Steel is by far the largest Egyptian exporter of HRC to Europe, and will be severely affected should the tariffs come into effect, making it unfeasible to continue to do business, Fastmarkets heard.
“It is one of [the company’s] main markets,” one market participant said. “It will be severely affected and will have lots of reasons to challenge this outcome. The market is very big for [the company], with exports to Europe making up 60-70% of its total exports.”
“Losing this market would be disastrous for [Ezz Steel] so announcing that it will challenge the outcome will help to put pressure on the European Commission and also help to reassure its customers in Europe,” the source added.
Outlook
If the proposed duties were to be imposed, flat-steel product trade flows from Vietnam, Japan and Egypt to Europe would be significantly limited, Fastmarkets heard.
The final decision on any permanent anti-dumping measures will be announced on October 7, Fastmarkets heard.
Ezz Steel did not respond to requests for comment at the time of publication.
Published by: India-Inés Levy
EU to delay first set of countermeasures against US tariffs until mid-April
The measures, announced on March 12, cover a wide range of agricultural and industrial goods including potentially some wood products, pulp, paper and board.
The first set involves allowing the suspension of existing countermeasures against the US from 2018 and 2020 to lapse. They include a 25% tariff on US corn imports into the EU.
This was initially set to happen on April 1 after the current suspension ends but will now likely be postponed to mid-April to coincide with a second package of measures on which the Commission is currently consulting, Šefčovič said.
“In the light of the recent announcement that the US is planning to introduce additional tariffs on April 2, we are now considering to align the timing of the two sets of EU countermeasures, so we can consult with member states on both lists simultaneously,” Šefčovič told a joint hearing of the Committee on International Trade on Thursday.
“It also gives us extra time for negotiations to try to find a mutually agreeable resolution. As a result, all the EU’s countermeasures that were announced on March 12 would in that case take effect in mid-April,” he said.
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Steel imports to EU, US fall in 2025; all eyes on April 2
The move to delay tariffs was announced after the US imposed a 25% tariff on steel and aluminium imports earlier this month.
In the first two months of 2025, imports and exports of steel products between the US and EU logged declines.
In January, the US exported 5,237 tonnes of steel to the EU, down by 7.20% from 5,682 tonnes of steel exported in December, data from the US International Trade Administration (ITA) showed.
In February, the EU applied to export 238,854 tonnes of steel to the US, down by 41.8% from the 410,742 tonnes of steel imported in January, according to the ITA data.
Market participants globally are also now closely tracking April 2 — what US President Donald Trump has called “Liberation Day” — when a slew of Trump’s reciprocal tariffs on goods coming to the US take effect.
The US President has also said new, higher tariffs on goods such as lumber, autos and copper will be announced then.
It remains unclear whether the tariffs will stack Trump’s Section 232 tariffs and specifically what goods will be subject to the broader tariffs, market participants previously told Fastmarkets.
Trump’s tariff policies are expected to slow economic growth in the US and globally, the Organization for Economic Co-operation and Development (OECD) reported on Monday March 17.
The risk of broader increases in trade barriers could weaken global growth more than previously expected, with inflation now remaining above target for longer in many economies, the report said.
Salzgitter expands portfolio for defence sector
Salzgitter AG will further expand its portfolio for defence purposes this year, Kallanish heard from chief executive Gunnar Groebler during the firm’s annual results conference on Friday. The firm is also seeking tighter EU restrictions against slab imports from Russia.
“We see good potential for our portfolio in renewable energies, especially wind power, but also in defence,” Groebler said. The German company is already a supplier to the German armed forces, and has now established the brand of “Secure” steels, and a “Defence” task force to coordinate further activities in this direction.
“Geopolitical tensions have set new measures of defence capability, and are creating new demand for security steels and special grades,” the company writes in its presentation.
“We have a wide scope of steels for security purposes, and we are in talks with a number of suppliers of such components,” Groebler noted during the conference. The exploration of market potential for “Secure” steels mainly concerns the group’s Processing unit, which deals with tubes and heavy plate, but also its plate distribution subsidiary Universal.
The company is thus appealing to the European Union for firmer action on slab imports from Russia, which it says rose last year. “It cannot be that we support Russia’s war economy,” Groebler stated. These imports are also rolled into plate in the EU, competing with Salzgitter’s portfolio, mainly of plate products.
On plate prices, the company has observed a relative stabilisation since last autumn, after a longer decline. For sections, prices actually held up quite well throughout 2024, and into this year.
Longs consumption seen growing, flats stalled: EUROMETAL conference
The outlook for long steel consumption in 2025 and 2026 is positive, driven by growth in the construction sector and relatively low import penetration, except for wire rod, rebar and structural sections, Kallanish hears from a speaker at the the EUROMETAL Steel Net Forum Iberia in Vilamoura, Algarve.
Fernando Espada, chief executive of Layde Steel, part of Tata Steel Nederland’s distribution business, predicts that demand for flat steel will remain stagnant.
“Long steel consumption should recover alongside the increase in public infrastructure projects. Demand is expected to return to pre-Covid levels, particularly in Spain and Portugal, where the recovery has been significantly delayed,” says Espada.
According to Espada, whilst import penetration is generally higher across Europe, Spain and Portugal stand out as exceptions due to their strong long steel production.
“It’s like trying to sell Parma ham in a region where we already have Iberian ham,” remarks the executive, who is also vice president of EUROMETAL.
The situation for flat steel is quite different and even calling demand stagnant might be overly optimistic, according to Espada.
“The market is declining at an alarming rate. The level of import penetration in the coil segment is outrageous and is severely impacting flat steel. However, it’s not that total import volumes are skyrocketing, the real issue is that demand is disappearing. As a result, the same import volume represents an increasingly larger share of consumption,” he observes.
The executive argues that the industry should not focus solely on monitoring import volumes but should also implement measures to stimulate demand for domestically produced material, as steel suppliers are shifting market dynamics.
“With import restrictions on coils, suppliers are responding by importing the entire finished product instead, just as we see with steel structures used in the wind energy sector. These come pre-formed and welded, mainly from Asian countries,” he explains.
The automotive sector continues its recovery trend, although the penetration rate of electric vehicles is slowing. There is a noticeable increase in car imports from Asia, alongside a growing influx of component supplies.
“I’ve heard that some of the major automakers, in all their new models, have been setting targets of up to 50% imported parts. Why? Because steel is simply not competitive in Europe. And I believe that’s the real issue we need to address with the European Commission,” the executive comments.
He remains optimistic that the EC is beginning to recognise the need to protect not just consumers, but also manufacturers, similar to the delayed implementation of emissions penalties for internal combustion vehicle makers. “This is expected to stimulate the market and boost coil consumption, which in turn will drive higher demand, price recovery, and improved margins,” Espada notes.
The European Union’s trade protectionism is creating legal uncertainty, warns Espada.
“Receiving a notification from the European Commission in late May stating that a new tariff will be imposed by July 1, which suppliers were not expecting, has severe negative effects on their operations. Any changes to import regulations must be implemented carefully and gradually. We have requested that the EC grant a one-quarter adjustment period because the market needs time to adapt,” he explains.
Espada also urges caution regarding the introduction of the Carbon Border Adjustment Mechanism (CBAM), which, although promising in theory, could turn into a regulatory disaster in practice. “The European Commission is beginning to realise this risk,” he adds.
Participants in the Steel Net Forum Iberia agree that governments should support domestic steel suppliers in public infrastructure projects by offering a premium to those who can produce steel with lower CO₂ emissions.
“This would increase the value of local production over imports from countries that can compete with us on price alone. If you incentivise a market where lower CO₂ emissions are rewarded, supply will naturally increase to meet demand,” Espada concludes.
