European Commission has informed China on December 19th 2008 that it intends to terminate the anti dumping investigation against hot dipped metallic coated iron or steel flat rolled products originating in China without any AD orders.
EU announced to initiate the investigation on December 14th 2007. It is EU"s biggest AD case against Chinese product and is related to other products such as wire rod, stainless steel and medium plate, posing a threat to total export value of USD 3 billion to USD 4 billion.
Hunan Lianyuan Steel Import & Export Company Limited, Hunan Valin Lianyuan Steel and Zhuzhou Oujia Economic & Trade Company Limited were involved in the case, covering total value of over USD 40 million.
Enterprises actively responded to the case and explained it was market factor that triggered rapid export growth rather than dumping. Some enterprises EU"s attitude reflected the lack of confidence in the competitiveness of its products as well as increasing dependency on government protection. It can be attributed to trade protectionism.
According to Mr Tang Congrong a lawyer who is engaged in EU related AD cases for years EU"s enthusiasm in AD cases against Chinese products is boosted by three factors:
1. China"s exports of steel products to the community keep swelling since 2007 and export price falls continuously.
2. Steel industry is an outdated sector in EU with aging structure, obsolete equipments and high labor force cost.
3. Rising costs for raw materials, energy and freight increase industry costs and erode on profits.
In 2008 Hunan"s steel sector is a severely afflicted area of trade frictions. Currently Xiangtan Steel, Lianyuan Steel and Hengyang Steel are all responding trade frictions.
The enterprises all deal with the frictions actively. Both Hunan Lianyuan Steel Import & Export Company Limited and Hunan Valin Lianyuan Steel have attended the defense organized by China Iron & Steel Association.