Offers of cold rolled coil from China into the European market have been withdrawn, according to sources, as traders react angrily to further European Commission trade measures.
While the euro has weakened against the dollar, sources in the north European market said Chinese offers had been made less competitive by the possibility of the absorption clause being triggered. This clause would allow the EC to double the current 22% duty. Chinese CRC offers had been reported at €458-460/mt CFR including the anti-dumping measure.
“There were some interesting offers from Chinese suppliers and traders for CR with the guarantee the AD duty would be included: these offers have disappeared, some offers were officially taken back because of the risk that the EC might increase the final dumping duty,” a German source said.
The official initiation of an investigation into hot rolled coil sourced from Serbia, Brazil, Russia, Ukraine and Iran has further angered traders and independent downstream manufacturers who import from outside of Europe.
“This is the way to kill the main industry in Europe, which is manufacturing. We shall see – instead of steel coming in – it will be refrigerators and washing machines,” said Alessandro Fossati, a senior steel trader.
Numerous trading sources have told Platts anti-dumping measures fail because they result in the imports occurring further along the value chain. But steelmakers argue that the measures are required to allow free and fair trade.
— Peter Brennan
