SHANGHAI China is
subsidizing its organic coated steel producers, the European
Commission determined this week, paving the way for companies
in the region to seek higher import tariffs on Chinese
products, according to the Financial Times.
This follows anti-dumping claims
vs. imports of Chinese organic coated steel, used mainly in
home appliances, construction materials, heating equipment and
The European Commission
concluded that the Chinese government has also been providing
subsidies on land, water, electricity and loans to producers of
"It is not a surprise to hear
the news since the (commission) was successful in proving its
anti-dumping case on the import of Chinese organic coated
steel," a major trader in Shanghai told AMM sister
publication Steel First.
An organic coated steel producer
in eastern China said the commission was trying to protect its
domestic producers. The steelmaker had responded to the
previous anti-dumping case but not to the complaint on
subsidies, its export director said. The steelmaker might not
respond at all, instead diverting its exports elsewhere, he
Chinas organic coated
steel capacity has risen, sparking an oversupply in the market.
But the countrys export volume didnt increase in
China exported 4.78 million
tonnes of organic coated steel in the first 11 months of 2012,
off 4.6 percent year on year, Chinese customs data show.
Its shipments of the product to
the 27 countries in the European Union totaled 546,900 tonnes,
down 32 percent from 808,200 tonnes in the same comparison.
The European Commissions
move is likely due to the gloomy economy in Europe, a Chinese
Chinese companies will have to
seek out new markets if the commission imposes tariffs on the
product, most likely diverting shipments to Asian countries or
A version of this article was first
published by AMM sister publication Steel