Implications Of EU Anti-Circumvention Investigation On Stainless Steel Imports From Malaysia And Turkey

Europe is the second largest market for stainless steel consumption after China, with an annual consumption of about 6.5 million tons. However, EU stainless steel trade barriers are high, and certain anti-dumping or countervailing duties will be imposed on stainless steel products from China and Indonesia.

On October 7, 2020, the European Commission issued an announcement to make an affirmative final ruling on anti-dumping of hot-rolled stainless steel sheets and coils originating in China, Taiwan, and Indonesia. Among them, the anti-dumping duty against Indonesia is 17.3%, that of mainland China is 9.2%-19%, and that of Taiwan is 4.1%-7.5%.

On September 16, 2021, the European Commission issued an announcement to make an affirmative final ruling for the first anti-dumping sunset review on cold-rolled stainless steel plates originating in China and Taiwan, China. Mainland China is taxed at 24.4%-25.3%; Taiwan is taxed at 0-6.8%.

On March 15, 2022, the European Commission announced the imposition of anti-subsidy duties on stainless steel cold-rolled plates originating in India and Indonesia, and amended the anti-dumping duties imposed by Commission Implementing Regulation (EU) 2021/2012. And finally decided to impose provisional anti-dumping duties on stainless steel cold-rolled plates originating in India and Indonesia, and decided to impose anti-subsidy duties of 4.3%-7.5% and anti-dumping duties of 10%-35.3% on products involved in India, and levy anti-dumping duties on products involved in Indonesia 0%-21.4% countervailing duty and 9.3%-20.2% anti-dumping duty.

In addition to imposing duties on imports of stainless steel coils, the European Union has also imposed anti-dumping duties of 48.0% to 71.5% on Chinese stainless steel seamless pipes, and 0-4% countervailing duties on Indian stainless steel bars.
In addition, the EU also grants certain tariff quotas to imported stainless steel. For mainland China, there are clear quotas for stainless steel hot-rolled thick plates, bars, wire rods and other profiles and seamless pipes; for Taiwan, China, there are clear quotas for stainless steel cold-rolled coils, hot-rolled thick plates, and stainless steel wire rods. However, the quota is relatively small.

In addition to this anti-circumvention investigation against Malaysia, the European Union had previously (June 2022) begun to investigate whether hot-rolled stainless steel sheets and coils originating in Indonesia shipped from Turkey had circumvented anti-dumping.
According to information, the European Union has investigated that some hot-rolled stainless steel products originating in Indonesia passed through Turkey to the EU, evading anti-dumping duties, and will impose an anti-dumping duty of 17.3% on these hot-rolled stainless steel products from Turkey.

3 The export volume of anti-circumvention investigation products to the EU is increasing year by year

 

1. The amount of stainless steel pipe butt-welding fittings exported from Malaysia to the EU has increased
In 2022, the export volume of stainless steel pipe butt-welding fittings in Malaysia will be about 8,945 tons, an increase of 2,480 tons or about 38.4% year-on-year. Among them, it is mainly exported to North America and the European Union, and the amount exported to Asia and other places is very small.

Except for 2020, the volume of stainless steel pipe butt-welding parts exported from Malaysia to the European Union has been increasing year by year in recent years. In 2022, the total amount will be about 3412 tons, an increase of 802 tons year-on-year, an increase of 30.7%.

2. The export volume of Turkish stainless steel hot-rolled sheets and coils to the EU has also increased significantly
In 2022, Turkey's export of stainless steel hot-rolled sheets and coils to the EU has increased significantly, with annual exports reaching 54,400 tons, a year-on-year increase of 20,000 tons, or 59.4%.
In June 2022, the European Union began to investigate the shipment of hot-rolled stainless steel sheets and coils from Turkey. In addition to the purchase of stock before the summer break, the volume in July reached a new high. Subsequently, as the demand for stainless steel in Europe continued to slump, the volume of hot-rolled sheets and coils exported from Turkey also dropped sharply and remained at a low level (more than 100 tons/month).

 

Summary: Judging from the statistical data, whether it is Malaysia or Turkey, the magnitude of relevant anti-circumvention stainless steel products exported to the EU is not large, which shows that the degree of trade protection for local steel is high, and it also causes the high price of stainless steel in the European market.

In recent years, the European Union has also increased its trade measures on imported stainless steel, which may affect China's stainless steel export to a certain extent.

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