Commission extends anti-dumping duties on grain-oriented flat-rolled products of silicon-electrical steel (GOES)
Steel NewsDate: 07-07-2023 by: Ngoc Cam
Grain-oriented flat-rolled products of silicon-electrical steel (GOES) are high-performance motors required in the EU manufacturing of transformers, generators, grids and wind energy. The EU's GOES market value stands at €410 million annually. In order to protect domestic producers from serious injury caused by dumping, the EC continues to extend GOES anti-dumping duties on exporters from China, Japan, South Korea, Russia and the United States of America from January 19, 2022.
1. EU: Definitive anti-dumping duty on imports of grain-oriented flat-rolled products of silicon-electrical steel from China, Japan, South Korea, Russia and the United States of America
According to the General Director of the European Steel Association (EUROFER) said “The EU energy security and climate objectives can only be met by maintain a viable European GOES industry” so to avoid dependence on foreign supplies such as Asia, the United States, Russia,...the EU were forced to intervene on GOES's import price policy.
After receiving the complaint of the European Steel Association (EUROFER) on June 30, 2014, the European Commission initiated an anti-dumping investigation against grain-oriented flat rolled products of silicon-electrical steel ( thickness over 0.16mm) imported from China, Japan, Korea, Russia and the United States. Products subject to investigation are grouped by CN code as follows: ex 7225 11 00 and ex 7226 11 00.
On May 12, 2015, the EU decided to impose temporary anti-dumping duties on Grain-oriented flat rolled products of silicon-electrical steel imported from China, Korea, Russia and the United States for a period of 6 months, specifically:
- The duty rate imposed on GOES originating in China is 28.7% of the net free-at-Union-frontier price
- The duty rate imposed on GOES originating in Japan is 35.9% of the net free-at-Union-frontier price, except JFE Steel Corporation (Tokyo) is subject to a duty of 34,2%.
- The duty rate imposed on GOES originating in Korea is 22.8% of the net free-at-Union-frontier price
- The duty rate imposed on GOES originating in Russia is 21.6% of the net free-at-Union-frontier price
- The duty rate imposed on GOES originating in the United States is 22.0% of the net free-at-Union-frontier price
On October 29, 2015, the EU decided to impose definitive anti-dumping duties on grain-oriented flat-rolled products of silicon-electrical steel imported from China, Japan, Russia and the United States (Commission Implementing Regulation (EU) No 2015/1953). The duty rate is calculated based on the European authorities' fixation on the difference between the net free-at-Union-frontier price and the minimum import price. The official notification took effect on October 31, 2015, after the publication of the resolution in the Official Journal of the European Union. The definitive dumping margins express as a percentage of the CIF Union frontier price, duty unpaid, are:
| Country | Company | Definitive dumping margin |
| China | Baoshan Iron & Steel Co., Ltd., Shanghai | 21,5 % |
| Wuhan Iron & Steel Co., Ltd., Wuhan | 54,9 % | |
| All other companies | 54,9 % | |
| Japan | JFE Steel Corporation, Tokyo | 47,1 % |
| Nippon Steel & Sumitomo Metal Corporation, Tokyo | 52,2 % | |
| All other companies | 52,2 % | |
| Republic of Korea | POSCO, Seoul | 22,5 % |
| All other companies | 22,5 % | |
| Russian Federation | OJSC Novolipetsk Steel, Lipetsk; VIZ Steel, Ekaterinburg | 29,0 % |
| All other companies | 29,0 % | |
| USA | AK Steel Corporation, Ohio | 60,1 % |
| All other companies | 60,1 % |
2. EU: Extension of anti-dumping duty on duties on grain-oriented flat rolled products of silicon-electrical steel from 5 countries
The investigation by the European Commission said that if the current anti-dumping measures were to end, the situation of GOES imports from Asian countries, Russia, and the United States would increase, which would be harmful to GOES production of Europe.
Therefore, the Commission will continue to implement this measure in the form of minimum import prices. Under WTO rules, the minimum import price is considered a non-tariff trade barrier and is not accepted. However, they are still used as an anti-dumping measure.
When the import price is lower than the minimum import price from 21.5 to 39%, the EU will apply anti-dumping duty. Therefore, it remains an acceptable regulation for grain-oriented flat rolled products of silicon-electrical steel to Europe. Although there are still many controversies and objections from Japan and China about this duty, the overall assessment shows that these measures will create a level playing field for domestic GOES producers and exporting countries with high quality GOES into EU.
Above are the latest updates of MRS Steel on the issue of “Commission extends anti-dumping duties on grain-oriented flat rolled products of silicon-electrical steel”. GOES is a strategic, high-end product that plays an important role in the European life and energy sectors. Therefore, the EC always issues policies to protect imported goods in a timely manner to avoid dependence on foreign supplies. This will ensure price stability and the domestic market, but it will also make it difficult for importers to access cheap, high-quality electrical steel sources.
