To keep with the trend of Steel related posts, the EU will apply tariffs of up to 25.2 percent for sheet, coil and strip stainless steel imports from China. This Tariff comes following a complaint by the “European steel producers association, Eurofer.” According to Eurofer, in 2013 China and Taiwan shipped in an impressive “620 million euros ($678 million) of cold-rolled stainless steel” – 17% of the overall market – into the EU and sold these goods at “unfairly low prices.”
What is interesting is that like the other articles would suggest, these numbers have tripled from 2010 to 2014. This growth has startled some in Europe especially those in the steel industry.
One of the main questions with this new tariff is, how effectively will it work? Seth Rosenfeld, a Jefferies analyst, suggests that the tariff will “not end imports from China, but were high enough to have a considerable impact.” He expects that the base prices should improve due to less undercutting by Chinese exporters.
For these Chinese companies, the tariffs have been set around 25 percent. This is hoped to increase “capacity utilization at European steelmakers to over 80 percent in 2017 from 64 percent in 2014.” It will be interesting to see how this increase affects different things in Europe: GDPs, exchange rates (i.e. the strength of the Euro), and other aspects.