METAL EXPERT INTERNATIONAL STEEL PLATE CONFERENCE Clara Van Hemelrijck, Van Bael & Bellis (Brussels) Frankfurt, 2 March 2015

AD investigations in the EU – Overview Anti-dumping measures have often been used by the EU industry against unfair imports of steel products The “protectionist” era against general types of HRC, CRC and GOES is probably over, while new AD/AS proceedings against specialty and more narrowly defined products are still very likely China remains the main target of anti-dumping actions by the EU EUROFER actively monitors steel imports and is prepared to request initiations of new TDI proceedings in the EU Product category Iron and steel (including iron and steel products) Source: EU Commission Annual Report (2014)

EUROFER is an active user of trade defense instruments From EUROFER’s recent statement (14/01/2015) on foreign trade- distorting industrial policies and their impact on the recovery of the European steel industry: European imports of Chinese boron-alloyed steel products surged in the first 10 months of 2014 year-on-year by +83% (plate) and +375% (rebar). “Trade-distorting industrial policies by third countries are detrimental to the recovery of the European steel industry and destroy jobs in Europe”, Eggert says. “The EU must vigorously act to re-establish fair trade for European steelmakers. We strongly welcome the Commission’s awareness of the problem.” olicy.fhtml

Treatment of China in Anti-dumping investigations Currently China is treated as a non-market economy (non-MET) country for purposes of anti-dumping investigations; Non-MET status affects determination of Normal Value of Chinese exporters and the resulting dumping margin; In practice, non-MET status leads to higher anti-dumping measures; European Commission is currently considering whether to grant China a fully-fledged market economy status (MET) at the end of 2016 on the basis of China’s WTO accession protocol.

Treatment of China in Anti-subsidy investigations Anti-subsidy investigations assess whether a given industry in an export country benefits from illegal subsidization which causes injury to the EU producers. Examples of subsidy programs/schemes in China: VAT rebates and refunds, export loans, income tax credit, provision of main raw materials at non-market prices, preferential tax policies, local tax discounts, etc. One anti-subsidy measure is in force against imports of Chinese steel and one investigation is presently on-going : Certain organic coated steel products (measures in force); Stainless steel cold rolled flat products (investigation pending).

New investigations in the EU Stainless steel cold rolled flat products (initiated 26 June 2014 – anti-dumping investigation) (Initiated 14 August 2014 – anti-subsidy investigation) Product: Flat rolled products of stainless steel, no further worked than cold rolled (cold-reduced) Complainant: EUROFER Provisional measures: (AD), (AS) | Definitive measures: (AD), (AS) Target countries: China and Taiwan (AD), China (AS) CountryImports to EUAlleged dumping Volume, MT% of total imports Volume, MT% of total imports China ,9% ,2%10%-20% Taiwan ,2% ,4%15%-25%

New AD investigations in the EU Grain-oriented flat-rolled products of electrical steel (Initiated on 14 August 2014) Product: grain-oriented flat-rolled products of silicon-electrical steel, of a thickness of more than 0,16 mm Complainant: EUROFER Provisional measures: | Definitive measures: Target countries: CountryImports to EUAlleged dumping Volume, MTMarket share, % Volume, MTMarket share, % J APAN […]14.2%[…]13.7%17-33% C HINA % %15-42% K OREA % %23-38% R USSIA % %21-76% USA % %8-48%

CountryProduct Type of investigation Normal expiry Initiation of original investigation Amount of duties (min – max) C HINA Organic coated steel productsAD / AS (AS) 2011 (AD) 13,7% - 44,7% (AS) 5,9% - 26,1% (AD) C HINA, T AIWAN Stainless steel cold- rolled flat products AD / AS (pending investigation) 2014 Stainless steel cold-rolled flat products C HINA, J APAN, K OREA, R USSIA, USA Grain-oriented flat- rolled products of silicon-electrical steel AD (pending investigation) 2014 C HINA, K OREA, T AIWAN Silicon metalAD ,3% - 19% Trade-defense measures in the EU against steel imports

CountryProduct Type of investiga tion Normal expiry Initiation of original investigation Amount of duties (min – max) C HINA Seamless pipes and tubes of stainless steel AD ,3%-71,9% Seamless pipes and tubes, of iron or steel (pending ER) AD ,7% - 39,2% Wire rod (pending ER) AD ,9% - 24,0% PSC wires and strands (pending ER) AD % - 46,2% Fasteners, iron or steel (pending ER) AD ,1% C HINA, T HAILAND Threaded tube or pipe cast fittings, of malleable cast iron (MTF) AD ,9%-57,8% R USSIA, U KRAINE Seamless pipes and tubes, of iron or steel AD ,3-35,8% M ALAYSIA Fasteners, iron or steel AD ,1% C HINA, P HILIPPINES T AIWAN Stainless steel fasteners and parts thereof AD ,8% - 27,5% Trade-defense measures in the EU against steel products

CountryProduct Type of investigatio n Normal expiry Initiation of original investigation Amount of duties (min – max) M OROCCO, C HINA, K OREA, M OLDOVA, U KRAINE Steel ropes and cablesAD ,8% - 60,4% I NDIA Stainless steel bars (certain) AS ,3% - 4,3% Tubes and pipes of ductile cast iron AD(INV)2014 Stainless steel wiresAD / AS ,0% - 3,7% T URKEY, R USSIA Tube and pipe fittings of iron or steel AD ,9% - 23,8% C HINA, T HAILAND Tube or pipe fittings of iron or steel (pending ER for China, measures expired for Thailand) AD ,4% - 58,6% M ALAYSIA, K OREA Tube or pipe fittingsAD(ER)200144,0% - 59,2% U KRAINE, R USSIA Seamless pipes and tubes, of iron or non-alloy steel AD ,3% - 27,2% B ELARUS, C HINA, R USSIA, U KRAINE Welded tubes and pipes of iron or non-alloy steel (pending ER) AD ,1% - 90,6% Trade-defense measures in the EU against steel products

Conclusions TDI instrument in the EU remains costly, not very fast (investigation lasts at least 12 months) and often involving greater politics New Commission is unlikely to change this trend as its main focus for 2015 agenda is the TTIP New entrants actively start using TDI: Brazil, Customs Union of Russia-Kazakhstan-Belarus, Egypt, Turkey, Morocco EUROFER will remain vigilant and may promptly request initiations of TDI proceedings against if unfair imports would increase into the EU

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