BRUSSELS, Oct. 29 (Xinhua) -- Chinese steel products
may become the new target of the European Union's anti-dumping charges as
European steelmakers lodged complaints with the European Commission on Monday.
The European Confederation of Iron and Steel
Industries (Eurofer) said it filed two complaints requesting the imposition of
anti-dumping measures on steel imports from China, with one related to stainless
steel cold-rolled flat products and the other concerning hot-dipped metallic
coated sheet and strip.
Imports from South Korea and China's Taiwan were also
included in the first complaint, which the Eurofer said was due to their sharp
increases in percentage terms.
"Both complaints are filed on the basis of evidence
showing that dumping of the products concerned is causing material injury to the
European steel industry," Eurofer said in a statement sent to Xinhua through
email.
The Brussels-based industry body claimed massive
volumes have been dumped on the EU market at dumping margins of up to 40
percent, bringing down European Union (EU) domestic prices by up to 25 percent
and making European steelmakers' life harder.
"EU steel producers have seen a significant loss of
market share, which is leading to important under-utilization of capacity--
something that seriously impacts current and future profitability of the sector
and puts thousands of European jobs at stake," Eurofer, whose members include
European steel giants ArcelorMittal and ThyssenKrupp, said.
Upon receiving the complaints, the European
Commission will have 45 days to decide whether to launch an anti-dumping
investigation, which could open a new field for a major trade friction between
the EU and China, following the anti-dumping case against Chinese leather shoes
in 2006.
Besides the two complaints raised Monday, Eurofer
warned it is examining the situation of other steel products in view of filing
additional anti-dumping charges against imports from China soon.
European steelmakers have been brewing the
anti-dumping complaints for months. They alleged Europe has become a victim of
overproduction in China, accusing China's export surge is based on excessive
capacity development fueled by subsidies, a claim rejected by a Chinese steel
industry official.
Zhang Xiaogang, Chairman of China Iron and Steel
Association, said in a recent interview with Xinhua that the rising steel
production in China has been driven by the rapid economic development in China
as well as global economic recovery in recent years, rather than government
support.
Some western countries have been using "double
standards" when it comes to trade and competition in the steel industry, he
said.
The EU steelmakers' call for trade restriction on
Chinese imports also met opposition from steel users of the 27-nation bloc.
European engineering association Orgalime, whose
members cover big steel consumers such as Siemens, ABB and Alcatel-Lucent, said
earlier this month China is now vital to the European steel consumers.
Orgalime said they have to rely on imports to meet
their demands due to lack of supply from local steel producers, and the
relatively cheap Chinese steel has helped them to maintain competitiveness on
the markets.
The steel trade quarrel occurred at a crucial time
when the EU was ready to overhaul its trade defense instruments including
anti-dumping measures, the first ever in a decade.
Based on the results of a public consultation, which
was launched last December, the European Commission was scheduled to unveil its
plan to reform the EU's trade defense system, which was considered outdated in
face of globalization.
The review was expected to take more account of those
EU companies which now produce goods outside the EU for import into the bloc,
outsource some steps in the production process, or operate supply chains that
stretch beyond the EU market.
Analysts said Chinese steel could be a test case for
the EU to adjust its anti-dumping measures, which were most frequently used and
often controversial.
The European Commission had said it would try to
balance the interests of both European steel producers and
users.