EU imposes duties on HRC from Egypt, Japan and Vietnam

The European Commission has imposed new duties on various imports of steel hot rolled coils and strips from Egypt, Japan and Vietnam after concluding its recent antidumping investigation.

The Commission revealed that the new duties, which have been applied from September 25, range from 6.9% to 30%. However, Indian-origin material, which was included in the investigation, will not be subject to a duty after the Commission found no evidence of dumping. Vietnam’s Hoa Phat Group, meanwhile, will receive a 0% rate as it was able to demonstrate its export prices were in line with normal market values. 

A complaint lodged by the European Steel Association, Eurofer, on June 24, 2024, prompted the Commission’s investigation. It alleged that exporters in Egypt, India, Japan and Vietnam were selling material at prices below those in their domestic markets. This practice was causing damage to the EU’s steel industry. 

Following a detailed assessment of imports brought into the region from April 1, 2023, to March 31, 2024, under CN codes 7208 and 7211, the Commission’s investigation found that the imports were being sold at unfairly low prices. 

As a result, the Commission has imposed definitive antidumping duties. 

All Egyptian producers face a uniform duty of 11.7%.  

Japan’s Tokyo Steel received a rate of 6.9% due to its cooperation with the Commission's investigation and fairer pricing, while Daido Steel and JFE Steel were assigned a 9.8% rate. Nippon Steel, along with all other Japanese exporters, is subject to a 30% duty. 

Vietnamese exporters, except for Hoa Phat Group, will receive a rate of 12.1%. 

Commenting on the announcement, MEPS steel market analyst Jon Carruthers-Green said: “This latest ruling, along with the launch of an investigation into cold rolled coil announced earlier this month, signals a tougher line on dumped steel. The Commission is sending out the message that Europe is no longer willing to absorb the impact of unfairly priced imports. 

“It also comes at an important time for the European steel sector, as the Commission prepares to unveil new measures, early next month, to replace the EU’s existing safeguard regime.” 

Evidence submitted to the European Commission in the form of Eurostat import data and industry submissions indicated that EU producers had lost market share to low-priced imports during the review period, while profitability fell sharply. 

The investigation also confirmed that these effects coincided with the sharp rise in imports from Egypt, Japan and Vietnam. These nations’ market share of European sales rose from 4.2-6.1% in 2021 to 7.6%-10.1% in the 2023-2024 reference period. 

The EU’s new antidumping duties, intended to counteract the price distortions caused by these dumped imports, will remain in place for five years, unless reviewed earlier.