EU steel makers ready bid to curb China imports

European steel makers are readying requests for anti-dumping duties against surging Chinese imports in the hope of heading off a slump in prices, a steel industry representative said.

Chinese steel exports to the EU are set to double this year to about 10 million tonnes from record levels last year, said Karl Tachelet, trade director at the European Confederation of Iron and Steel Industries (Eurofer).

"Instead of waiting for the inevitable, we've started preparing anti-dumping complaints based on the threat of injury which are well advanced,' he said.

"Unless we see an immediate, significant decrease (in imports), Chinese exports will inevitably depress EU prices, injuring EU mills."

Under EU trade rules, European industries can ask the European Commission to probe suspected dumping by exporters outside the bloc, usually by showing that they are being damaged but in some cases by showing the risk of imminent injury.

EU and China trade officials specialists are due to meet in Beijing to discuss steel.

EU Trade Commissioner Peter Mandelson raised his concern about the issue with Chinese counterpart Bo Xilai last month.

China denies the charge that it exporters are dumping steel.

Eurofer has previously said it might seek anti-dumping duties on Chinese imports.

The association is now working on requests for duties on hot-rolled coil, wire rod and cold rolled stainless steel products, Mr Tachelet said, adding a decision to press ahead with them depended on "what happens in the next few months".

Some consumers of steel in Europe, such as engineering companies, are opposed to the idea of making Chinese imports more expensive. They say prices in Europe remain high and steel makers' profits are buoyant.

But Mr Tachelet said Chinese imports were now undercutting European prices for domestically produced hot-rolled coil, a first step towards a depressed market.

China has reduced tax rebates in a bid to slow steel exports and ease friction with its major trading partners.

But last month, US welded pipe producers asked Washington to impose duties on competing imports from China, arguing they were sold at unfairly low and subsidised prices. The US already levies anti-dumping duties on other steel products.