European Commission announces HRC antidumping investigation into Egypt, India, Japan and Vietnam

The European Commission announced Aug. 8 an anti-dumping investigation for certain non-ferrous products originating from countries such as Egypt, India, Japan and Vietnam.

The announcement, published in the Official Journal of the European Union, said that European Steel federation Eurofer lodged a complaint alleging that the imports of certain hot-rolled flat products originating from these four nations were being dumped into the market and, therefore, causing economic damage to the bloc.

"The evidence provided by the complainant shows that the volume and/or the prices of the imported product under investigation have had, among other consequences, a negative impact on the quantities sold, the level of prices charged and market share held by the Union industry, resulting in substantial adverse effects on the overall performance, the financial situation and the employment situation of the Union industry," the Official Journal notification said.

The note also said that Eurofer provided evidence that there may be raw material distortions in India and Vietnam regarding the product under investigation, in the form of export taxes of raw materials.

The investigation comes at a time where much of the market was already anticipating this decision, with many participants appearing to be unphased by its potential long-term implications.

"The prices of the imported product under investigation have had, among other consequences, a negative impact on the quantities sold, the level of prices charged and market share held by the Union industry," the notice said about the allegation of injury. "Resulting in substantial adverse effects on the overall performance, the financial situation and the employment situation of the Union industry."

Despite the announcement pertaining to a large section of the hot-rolled flat industry, market players remain cautious, particularly as the outcome of the investigation is uncertain and outlooks appear speculative.

"We have to see what comes out after the investigation," a service center source said. "It is only speculation."

"[Right now,] we are more afraid of price decreases and a lack of positive signal coming from the automotive industry." a second service center source said.

Market sources have also noted that currently, interest in imported material remains low, as the existing import quota caps from the European safeguard measures combined with higher freight rates has made it unattractive to import. Material consumption is already shifting towards domestic European mills; should anti-dumping duties be imposed on top of an already weak import interest, both domestic demand and prices could strengthen, market sources have said.

The implementation of safeguard measures for hot-rolled coil products has now been in effect for quite some time in the market, with import quotas for each quarter being exhausted very quickly. As of today, Taiwanese and Japanese hot-rolled coil imports have been exhausted, with Egyptian and Vietnamese material waiting to be updated on the European Commission's website.

"The EC investigation should support domestic prices in the near term. The clear intention of the investigation is to level the playing field for domestic producers." a mill source said.

"I expect that domestic mills will start to increase prices." the second service center source said.

The investigation will be concluded within one year of the announcement, with provisional measures being imposed no later than eight months, the notice said.

Platts assessed domestic HRC prices in Northwest Europe at Eur615 per metric ton ex-works Ruhr Aug. 7, stable on the day. Platts also assessed domestic HRC prices in Southern Europe at Eur610/mt ex-works Italy Aug. 7, also stable on the day.

In comparison, Platts assessed hot-rolled coil in southeast Asia at $486/mt CFR Southeast Asia Aug. 8; in India, HRC prices were last assessed at $603.96/mt ex-works Mumbai Aug 8.

Platts is part of S&P Global Commodity Insights.