Recent curbs on steel imports feared to hamper normal trade

BEIJING (Scrap Monster): The Chinese authorities have expressed their concerns over the recently introduced restrictions on steel imports by the EU countries. According to them, the new restrictions may hamper normal trade with the region.

In a bid to safeguard interests of domestic steel industry, the EU-28 countries had announced yesterday that it will implement a new prior-surveillance system for imports of steel products into the member countries. Accordingly, the imports of steel products into the EU bloc will now require an import license. The decision is on the back of allegations by various local producers that dumping of steel products from third countries, especially China, has damaged the local industry and jobs. The statement issued by the European Commission noted that the new mechanism is part of a series of measures aimed at supporting the EU steel sector.

Meantime, China has expressed concern over the move. It warned that trade protectionism measures would do no help to tackle global steel overcapacity. The Ministry of Commerce, in a statement, noted that the country has always advocated anti-trade protectionism and that it always maintains stable, predictable and fair trade environment. It urged the EU authorities to abide by the commitments it has made and avoid sending wrong signals.

As per estimates, Chinese steel demand has tumbled to 700 million tonnes. Production has been cut by nearly 100 million tonnes. However, the country still holds large stockpiles of steel products. In a bid to reduce rising stockpiles, Chinese producers have been trying to ship increasing volumes of steel into global markets including the EU-28 countries at a cheaper rate.