EU imports surge forced closures of stainless steel drawn wires producers
In line with the modest European economic recovery, the stainless steel long products demand in Europe recorded a slight improvement in 2014. However, imports from third countries benefited most from the increase in apparent consumption. “An effective EU trade policy defending the European industry against unfair trade practices is crucial for reestablishing fair trade and securing the viability of the EU steel industry”, says EUROFER Director General Axel Eggert.
Although anti-dumping and anti-subsidy duties on imports of stainless steel cold drawn wire from India were in force, Indian exports to the EU increased and represented around 17% of EU apparent consumption in 2014. At the same time the Italian stainless steel cold drawn wire producer Trafilerie Brambilla went bankrupt, and Fox Wire, the largest manufacturer of stainless and high alloy steel wire in the United Kingdom, went into liquidation. The past output of these two companies together represented about 10-15% of total European stainless steel cold drawn wire production.
The EU steel industry collected evidence of a duty-absorption policy being applied by Indian exporters and, on 3rd December 2014, the European Commission has officially opened an absorption investigation concerning these imports. “The absence of a timely action will progressively lead to further losses of jobs and revenues for the European stainless steel production so badly needed for investment in the EU”, adds Eggert.
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