Series Title | European Voice |
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Series Details | 17/04/97, Volume 3, Number 15 |
Publication Date | 17/04/1997 |
Content Type | News |
Date: 17/04/1997 By GERMAN, French and Spanish steel companies have called on the European Commission to renew anti-dumping duties on Turkish and Brazilian imports. The Düsseldorf-based German Steel Association is leading the way in demanding a review of existing duties on alloyed steel semis - a product used, for example, for vehicle engine and suspension parts - when they expire in June. Steel giants such as Thyssen and Saarstahl are amongst the German companies lobbying for the defensive measures. They have been joined by French producer Ascometal and Spain's Sidenor. European steel lobby Eurofer convinced the Commission five years ago to impose a raft of duties, mostly of around 15&percent; of the entry price of imports into the EU. It is now warning that the danger of dumping is even greater as both Turkey and Brazil have increased their capacity during the intervening years. Brazil has boosted its capacity in what is a fairly specialised segment of the steel market by around 550,000 tonnes in the last few years, says Eurofer, while Turkey has added around 350,000 tonnes. Duties at current levels have had a mixed effect on imports from both countries. Those from Turkey have nonetheless doubled from around 6,000 tonnes in 1992 to around 12,500 tonnes last year, whereas those from Brazil have almost halved to stand at an estimated 11,000 tonnes last year. Turkey has around 1.7&percent; of the EU market and Brazil 1.5&percent;. However, most of this production is targeted at German industry and especially its thriving auto sector. European producers of the high-quality steel face severe pressure on their profit margins at the moment which would make them very vulnerable to lower-cost imports. In its submission to Commission trade officials, Eurofer says prices are currently between 11&percent; and 13&percent; lower than when the original duties were imposed in 1992, and argues average duties should be increased to between 17&percent; and 23&percent; if they are to remain effective deterrents against dumping. “At present, the Community producers are in a bad situation. A further increase of dumping exports will lead to a further deterioration of their position,” said the German steel lobby. UK steel companies are also concerned about another category of Turkish steel exports - reinforcement bars - especially after a US decision to impose its own duties on these products ranging from 10&percent; to 40&percent;. “We are wondering where the excess capacity will go,” said Ian Goldsmith, of the UK Steel Association. Commission officials will be asked to raise this issue with the Turks during regular troubleshooting meetings on trade issues. Goldsmith added that the UK market was particularly inviting to exporters because of the high level of sterling. British Steel has already announced the lay-off of hundreds of workers on the grounds that it cannot hope to compete on export markets because of the appreciation of the pound. The last thing it wants now is for its domestic markets to be undermined. Reinforcement bars are widely used in the construction industry, with around 50 European producers in the crowded and competitive market. The US has already launched an investigation into dumping by Union producers of free-cutting steel, another speciality steel used in mechanical engineering. The move is being seen by the European industry as another signal that the door to the transatlantic market is being slowly shut in anticipation of a slow down in the second half of the year. Final duties in this sector would mostly hit smaller, specialised German companies. Europe's biggest producers already face US duties on flat steel, one of their main high- volume products. European exports to the US fell by 30&percent; in 1996, partly because of the rise of more efficient US mini-mills capable of meeting domestic demand. EU producers have faced increasing difficulty exporting to the US over the last decade, with the country taking only 20.3&percent; of overall steel exports in 1993, down from 22.4&percent; in 1988. The expanding Asian market has, however, absorbed some of the slack. |
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Subject Categories | Business and Industry, Trade |
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