Context of the Anti-Dumping Measures
The European Union (EU) originally imposed a 15.6% provisional anti-dumping (AD) duty on hot-rolled flat products of iron, non-alloy, or other alloy steel imported from Egypt. This provisional measure was part of the EU's broader trade safeguard framework to protect its domestic industries from the adverse effects of dumped products—those exported at unfairly low prices.
These steel products are crucial in sectors such as automotive, construction & machinery manufacturing. The EU market is highly sensitive to price distortions due to the strategic importance & competitive nature of the steel industry.
Ezz Steel’s Formal Objection & Grounds of Appeal
Ezz Steel, Egypt’s largest steel manufacturer, raised several objections following the announcement of the initial 15.6% duty:
1. Low Export Share:
Ezz Steel claimed that its exports made up only 1.3% of the EU’s open market for hot-rolled flat steel, asserting that such a minor share posed no significant injury to EU producers.
2. Exchange Rate Volatility:
The firm emphasized how fluctuations in Egypt’s currency had already raised its costs, making dumping allegations economically unjustified.
3. Overestimated Freight Costs:
Ezz Steel also contended that the original duty calculations exaggerated freight costs, artificially inflating the dumping margin attributed to its exports.
These points collectively influenced the European Commission to reassess its preliminary determination.
Revised Duty Rate & Timeline of Enforcement
Responding to these appeals, the EU Commission opted to lower the AD duty from 15.6% to 12.8%, acknowledging the merit in Ezz Steel’s arguments. This reduction in the provisional duty became effective on April 7, 2025, and will remain in place pending a final determination.
The upcoming final ruling will be based on comprehensive data from EU member states, economic injury analyses, and stakeholder feedback. It may either confirm the provisional rate, adjust it further, or even revoke it altogether.
Economic & Trade Implications
The revised duty could marginally ease the cost pressures on European importers relying on Egyptian steel, especially during periods of high demand or regional supply constraints. On Egypt's side, the revision is seen as a partial diplomatic win, potentially paving the way for smoother trade relations with Europe.
However, market uncertainties remain until the final determination is announced. European steelmakers, still wary of oversupply & price undercutting, are lobbying to retain protective barriers, whereas Egyptian stakeholders are calling for fairer evaluation metrics in the final phase.
Broader Anti-Dumping Trends in the EU
This development is part of the EU’s evolving anti-dumping strategy in a volatile global steel market, influenced by shifting production hubs, protectionist policies, and increasing competition from low-cost nations.
Recent years have seen the EU tighten AD scrutiny on imports from countries like China, Turkey, India & Russia. However, there is growing pressure on the EU to balance protectionism with competitiveness, especially amid rising infrastructure investments & the European Green Deal, which necessitate vast quantities of affordable steel.
Product Classification & Trade Code
The affected Egyptian products fall under hot-rolled flat steel—a form of rolled steel used extensively across manufacturing. These are classified under customs HS codes related to flat-rolled products of iron or non-alloy steel, including those with other alloy compositions, typically in coils or flat shapes.
These products are regulated under European Commission’s trade defense framework, which includes mechanisms for AD, countervailing, and safeguard measures.
Key Takeaways:
• The EU reduced its provisional anti-dumping duty on Egyptian hot-rolled flat steel from 15.6% to 12.8%.
• Ezz Steel argued that its exports form only 1.3% of the EU market & cited exchange rate effects.
• Overestimated freight costs were also challenged, prompting the duty revision.
• The reduced provisional duty took effect on April 7, 2025.
• A final determination on the duty will be announced in the coming months.
• The products fall under hot-rolled flat steel categories used in industrial manufacturing.
• The case illustrates EU’s nuanced approach to balancing protection & trade openness.
• Steel remains a sensitive sector amid global trade tensions & decarbonization transitions.
• Egypt seeks fair treatment under EU trade law despite its minor export volume.
• This revision could influence EU’s future reviews with other minor steel-exporting nations.
