Chinese HDG seen retaining EU presence despite duties

Chinese imports of hot-dip galvanized coil into the EU are expected to remain significant going forward despite the existing anti-dumping duties in place. This is thanks to the fact automotive grades have been excluded from the trade barriers, said sources gathered at the Assofermet event in Milan attended by Kallanish on Monday.

Georges Kirps, head of the European distributors association EUROMETAL, confirmed that Chinese HDG suppliers will continue to play an important, albeit reduced role in Europe.

Eurometal calculated that China supplied some 2.3 million tonnes of HDG into Europe in 2016. However, the association noted that the automotive sector was very effective in lobbying to exclude automotive grade HDG from the imposed duties.

Kallanish understands that despite the imposition of duties in August this year, China could still supply some 1 million tonnes/year of HDG into Europe going forward. In addition, other suppliers that process hot and cold rolled coil imported from China, such as Vietnam, are increasing their exports into Europe.

The European Commission could investigate some of the new importers in the market for circumventing the existing trade laws by selling material processed from Chinese HRC and CRC. However, Kirps observed that proving circumvention for the European Commission is a very complicated process.

Following the imposition of provisional antidumping duties in August, the EU is expected to announce definitive measures on Chinese HDG by February 2018.