EU imposes anti-dumping measures on Chinese electrolytic chromium-coated steel
Steel NewsDate: 22-04-2023 by: Nhu Quynh
The European Union (EU) has imposed anti-dumping duty on electrolytic chromium-coated steel products originating from China to prevent these products from flooding the difficult European steel market.
EU anti dumping investigations on steel products from China
It is the largest producer of steel, accounting for half of world production. China has long been accused, economically, of flooding the world with cheap steel. The dumping of steel products in the EU helps China create a competitive advantage in this market while addressing excess supply in the domestic market.
The issue of Chinese steel dumping has existed for a long time and has become a hot spot amid widespread global trade protectionism. There has been an investigation that lasted from January 2020 to December 2020, indicating that China's electrolytic chromium-coated steel products have been dumped on the EU market and have harmed the EU industry.
According to the European Commission, after imposing anti-dumping duty on electrolytic chromium-coated steel products from China, these tariffs will help protect more than 1,000 employees in the steel industry.
The EU has imposed anti-dumping duties on China.
Through the investigation, some Chinese electrolytic chromium-coated steel products have exhibited dump behavior in the EU market. That causes damage and is the main cause of the threat to the steel industry among domestic enterprises in this alliance.
After the investigation process, on May 23, 2022 the European Commission decided to impose anti-dumping duties on a number of steel products originating in China. Steelmakers from China could be hit with duty of up to 77.9%. Specifically, the duty rate applied to each factory is as follows: Baoshan Iron & Steel is subject to a 33.2% duty; Handan Jintai Packaging Material is 53.9%; for GDH Zhongyue, Tinplate Industry, and Shougang Jingtang United Iron & Steel, it will be subject to a 36.7% duty.
The measure is part of efforts launched by the EC to combat the flooding of cheap Chinese steel onto the EU market.
What are the opportunities for Vietnam when China is hit with anti-dumping duties by the EU?
As a country with a thriving steel industry in the region, China's anti-dumping duty by the EU have opened up a lot of opportunities for Vietnam's steel market. Vietnam's steel export volume to the EU has increased rapidly year over year. The growth of steel exports shows that steel producers in Vietnam are increasingly interested in the EU market and have made good use of the opportunities that this market brings.
The EVFTA Agreement is a free trade agreement between Vietnam and the 27 EU member countries. Not only is it eliminating more than 99% of customs duty on goods, but it is also opening a way for Vietnamese steel to penetrate deeply into the 27 member markets of the EU, with great potential for development.
Currently, the heat of the Russia - Ukraine war has disrupted global steel supplies, leading to shortages and high steel prices. The EU's shortage of supply is a condition for Vietnam's steel producers, such as Hoa Phat, Nam Kim, Ton Dong A, et al., to export more to this market.