EU’s Provisional Anti-Dumping Duties on Coils from Egypt, Japan, and Vietnam
On April 8, 2025, the European Commission officially imposed temporary anti-dumping duties on hot-rolled coils from three key exporting nations: Egypt, Japan, and Vietnam. The decision follows an investigation that began in August 2024, after a complaint was lodged by the European Steel Association, raising concerns about unfair pricing in the market. The investigation covered the import period from April 1, 2023, to March 31, 2024, and was launched in response to allegations that companies in these countries were selling steel coils at artificially low prices in the European Union, which negatively affected EU manufacturers.
Key Details of the Anti-Dumping Duties:
The provisional duties will be enforced for a period of six months, and the rates for each country and their respective companies vary significantly based on the findings of the investigation. The main goal of these duties is to restore fair competition in the European steel market by preventing dumping practices, where foreign companies sell products at lower-than-normal prices, often below the cost of production, to gain market share unfairly.
Egypt:
• Ezz Steel and all other Egyptian companies will face a 12.8% anti-dumping duty on hot-rolled coils. This decision was made after considering the pricing behavior of Egyptian exporters, which was found to distort competition in the European market.
Japan:
• Tokyo Steel will face a 6.9% duty, while Daido Steel and JFE Steel will be subject to a much higher 32.9% duty. This significant difference reflects the varied pricing structures of the companies involved.
• Nippon Steel and all other Japanese firms will face the highest duty at 42.5%. The Japanese steel industry has long been a major exporter to the EU, and this decision comes in response to pricing practices deemed unfair by the European Commission.
Vietnam:
• Formosa Ha Tinh Steel will face a 12.1% anti-dumping duty, while Hoa Phat Dung Quat will be exempt from these duties, facing a 0% rate. The differing rates reflect the varying pricing patterns and the degree to which Vietnamese companies have been involved in dumping practices.
Why Are Anti-Dumping Duties Necessary?
Anti-dumping duties are typically implemented to protect domestic industries from foreign competitors who sell goods below market value, often as a means of gaining unfair market share. These practices can harm local manufacturers, potentially leading to job losses, reduced profitability, and lower market stability.
In this case, EUROFER, the trade association representing European steel producers, filed the complaint after noticing the unfair pricing of hot-rolled coils coming from Egypt, Japan, and Vietnam. The European steel industry has faced increasing competition from cheap steel imports, putting pressure on local producers who cannot compete with the artificially low prices of imported coils.
The European Commission’s decision to impose temporary duties aims to level the playing field for EU producers, helping them maintain profitability and avoid being pushed out of the market by unfair trade practices. These measures also serve as a warning to foreign exporters that the EU will take strong action against dumping to protect its industries.
Investigation Process and Industry Feedback
The EC’s investigation began after the complaint was filed in August 2024, and stakeholders from the affected countries were given an opportunity to comment on the proceedings. In particular, hearings were held with the Governments of Egypt, Japan’s Ministry of Economy, Trade and Industry, and exporting companies from the concerned countries. These hearings allowed the involved parties to present their arguments and defend their positions before the final decision was made.
However, despite the investigation, India was excluded from the proceedings. The EC found no evidence of dumping by Indian exporters of hot-rolled coils. As a result, no provisional duties have been proposed for Indian steel exports to the EU.
Impact on the Steel Market and Stakeholders
The introduction of anti-dumping duties is expected to have a significant impact on the steel industry, both in Europe and internationally:
For the EU Market:
• EU producers will benefit from the removal of unfair competition, as the duties will make imported hot-rolled coils more expensive, giving local producers a competitive edge in pricing.
• Higher prices for hot-rolled coils could also raise costs for EU manufacturers that rely on these products as raw materials, such as in automotive, construction, and engineering industries. While these measures are aimed at protecting the European steel industry, they may result in increased input costs for industries that use steel in their production processes.
For Exporting Countries:
• The new duties will increase the price of hot-rolled coils from Egypt, Japan, and Vietnam, potentially reducing their market share in the EU. This will make it more challenging for these countries to sell steel to European consumers at competitive prices.
• In the case of Vietnam, the exclusion of Hoa Phat Dung Quat from the duties could create an opportunity for other Vietnamese steel exporters to increase their share in the EU market, provided they can maintain competitive prices without resorting to dumping practices.
For the Global Steel Market:
• The imposition of anti-dumping duties may have ripple effects on global steel trade, with other regions potentially following the EU’s lead if they perceive similar practices in their own markets.
• The trade relations between the EU and the affected countries may become more strained as a result of these measures, potentially leading to retaliatory actions or the introduction of countermeasures by the governments of Egypt, Japan, and Vietnam.
Key Takeaways:
• Anti-Dumping Duties: The European Commission has imposed temporary anti-dumping duties on hot-rolled coils (HRC) from Egypt, Japan, and Vietnam due to unfair pricing practices.
• Duty Rates: The rates vary from 0% to 42.5%, with Ezz Steel (Egypt) facing a 12.8% duty, Tokyo Steel (Japan) facing 6.9%, and Nippon Steel (Japan) facing 42.5%. Vietnam’s Formosa Ha Tinh Steel faces a 12.1% duty, and Hoa Phat Dung Quat faces 0%.
• Duration of Measures: The duties will remain in effect for six months, starting from April 8, 2025. No decisions on retroactive application have been made yet.
• Exclusion of India: The European Commission did not propose anti-dumping duties on Indian hot-rolled coils after concluding there was no evidence of dumping from Indian exporters.
• Investigative Process: The duties followed an investigation initiated by EUROFER, and stakeholders were given the chance to comment, including government officials and companies from Egypt, Japan, and Vietnam.
• Impact on the EU Market: The move aims to protect EU steel producers from unfair competition but could increase input costs for industries relying on imported steel.
• Global Impact: These actions could influence global trade relations and encourage other nations to consider similar anti-dumping measures against unfair steel practices.
The temporary anti-dumping duties reflect the EU’s commitment to protecting its domestic steel industry from unfair trading practices, ensuring that local producers can compete on an equal footing in the global market.
