EU imposes duties on some Turkish iron, steel imports (updated)

Iskenderun Demir Ve Celik

07/01/2021 10:47

(Adds Turkish reaction, background)
    By Ceyda Caglayan and Nevzat Devranoglu
    ISTANBUL, Jan 7 (Reuters) - The European Union will impose
tariffs from Friday on hot-rolled iron and steel products from
Turkey based on an ongoing investigation into dumping.
    The duties will range from 4.8% to 7.6% and affect Turkish
companies Erdemir  EREGL.IS , Isdemir  ISDMR.IS , Colakoglu
Metalurji and Habas, according to the text of the EU official
journal published on Thursday.
    The complaint shows that EU steel consumption was 4% lower
in 2019 than 2016, while Turkish exporters increased their
market share to 8.1% from 2.8%, partly due to EU measures
against other steel exporters,= such as China and Brazil.
    However, while Turkish prices rose overall, they were still
consistently less than prices of EU producers, the investigation
showed. 
    Turkey exported some $3 billion of hot-rolled steel to the
EU in 2020, according to Ugur Dalbeler, deputy chairman of
Turkey's Steel Exporters' Association. 
    The duties will apply for six months, by which point the
investigation should have concluded. The EU will collect these
provisional duties if its investigation confirms dumping, it
said.
    The probe, launched in May, followed a complaint from
European steelmakers association Eurofer.  urn:newsml:reuters.com:*:nL8N2CW6S7 There is
also a parallel anti-subsidy investigation into the same product
from Turkey. It also concludes in July.
    Turkish steel products are already subject to an EU quota.
    "The steel sector is already not able to work with high
profit margins. Now being subject to this duty will push us off
course in terms of competition in Europe," Dalbeler told
Reuters. 
    Turkey was the top source of finished steel product imports
into the EU in 2018, with a surge of 65% to 6.17 million tonnes
from the previous year. 
    The EU put in place safeguards in 2018 to control incoming
steel to protect European manufacturers after Washington's
imposition of 25% steel tariffs closed the U.S. market to many
exporters.

 (Reporting by Nevzat Devranoglu and Ceyda Caglayan; Additional
reporting by Philip Blenkinsop in Brussels; Writing by Daren
Butler; Editing by Jonathan Spicer and Alex Richardson)
 ((daren.butler@tr.com; +90-212-350 7053; Reuters Messaging:
daren.butler.thomsonreuters.com@reuters.net))