Eurofer challenges EU stainless steel tariff exemptions

Importers have expressed nervousness about Eurofer’s efforts to contest the findings of the European Commission’s countervailing and antidumping investigation into stainless steel imports from Taiwan, Turkey and Vietnam.  

In May, the Commission confirmed the extension of definitive countervailing and antidumping duties applied to stainless steel cold rolled flat product imports originating in Indonesia, to material processed in Taiwan and Vietnam. Evidence gathered by the Commission indicated the circumvention of antidumping duties imposed on Indonesia-origin material by companies in the two countries, but not those in Turkey.  

The Commission’s findings led to the application of duties of up to 39.8% against many Taiwanese and Vietnamese suppliers. However, several companies were granted reduced duties or exemptions.   

Miscalculation allegation  

In two legal complaints filed with European Court of Justice in July, and published in September, Eurofer alleges that “a manifest error of assessment and of law” led to the miscalculation of its key ‘assembly operation test’. The test was used to determine the level of processing undertaken by companies in Taiwan, Turkey and Taiwan before it was exported to the EU. As such, it was used to determine whether circumvention had taken place.  

Eurofer’s legal filings now call for exemptions to the antidumping and anticircumvention duties to be withdrawn, particularly citing producers in Taiwan. If successful, its application could add cost to future imports from European importers’ trusted import sources.  

• This content first appeared in the September edition of MEPS International's Stainless Steel Review. The publication features market insight, stainless steel prices, indices and forecasts from key markets in Europe, Asia and North America. Visit mepsinternational.com or contact MEPS for details of how to subscribe.

The European Commission’s antidumping and anticircumvention investigation began in August last year. It resulted from a complaint submitted by Eurofer and resulted in a period of uncertainty among EU importers. Many paused their purchase of cold rolled flat products from the three affected countries amid fears of retrospective tariffs.  

In May, market participants welcomed the conclusion of the investigation. MEPS respondents said that they had been able to resume orders with trusted overseas suppliers. 

Import supply  

Last month’s Stainless Steel Review highlighted that quarter three imports from Taiwan’s had quickly exceeded the 26,233 tonnes imported in the first two quarters of the year combined. Taiwan was the EU’s only stainless cold rolled sheets and strips safeguard quota to exceed its quarter three limit – of 46,535-tonnes – at the time of this report’s publication. Between July and August alone, 48,373 tonnes of Taiwanese cold rolled sheets and strips entered Europe.    

With available quota allowances remaining from various countries – including in the “other countries” category – the success of Eurofer’s legal bid would be unlikely to apply upward pressure to stainless steel prices in the EU. Any reduced competition from imports may benefit EU stainless steel producers suffering the effects of heavily subdued demand, however. MEPS’s cold rolled coil prices declined across the EU in September.  

Production costs in the EU are a major challenge for European mills aiming to compete with low-cost Asian imports. This was demonstrated by Arvedi Acciai Speciali Terni (AAST) recent extended EAF shutdown, which it attributed to elevated energy costs. MEPS respondents report that AAST – and other European steelmakers – have increased imports of low-cost Asian slab in an effort to reduce costs.  

Asian-origin slab and ferrochrome imports are helping Europe’s steelmakers to achieve cost-savings as an alternative production input to domestically sourced stainless steel scrap.  

Data published by Indonesia’s central bureau of statistics shows that Indonesia’s exports to Europe’s steelmakers have increased from 1,006 tonnes in 2023 to 87,485 year-to-date at the end of July. Italy (21,131 tonnes) and the Netherlands (43,447 tonnes) are the largest recipients of this material. The United Kingdom received 22,881 tonnes of Indonesian ferrochrome.