Ezz Steel to challenge Europe’s anti-dumping duties on flat steel imports

Egypt-based steelmaker Ezz Steel plans to challenge the European Commission’s proposed imposition of a preliminary 15.6% anti-dumping duty on all hot-rolled flat steel imports from Egypt into Europe, Fastmarkets heard this week.

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