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European Commission decision on SSCR major step forward in countering severe trade distortions
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European Commission decision on SSCR major step forward in countering severe trade distortions

The EU has imposed anti-subsidy duties on imports of stainless steel cold-rolled flat products originating in Indonesia and India

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Brussels, 16 March 2022 – EUROFER welcomes the publication of the European Commission implementing regulation imposing definitive anti-subsidy measures on imports of stainless steel cold-rolled flat products (SSCR) originating in India and Indonesia. These measures are an important step forward in implementing the EU policy objectives for fair and free trade.

“The European Commission’s decision is a landmark achievement, as it ensures a level playing field for the EU stainless industry, and it is also fundamental in implementing the EU commitments towards sustainable and balanced trade”, said Axel Eggert, Director General of the European Steel Association (EUROFER).

The proceeding was initiated on 17 February 2021, following a complaint submitted by EUROFER. Its conclusions come after significative efforts by both the industry and the Commission to address major raw materials distortions in stainless steel resulting from state interventions in Eastern Asian countries.

These behaviours have granted undue competitive advantages to exporting producers on the EU market and created massive non-market overcapacities. At the same time, it should also be highlighted that the Sino-Indonesian capacities - 100% export-oriented - are relying on production processes which result in CO2 emissions that are around four times higher than Europe’s low carbon stainless steel production.

The Commission’s measures also consolidate the new course of the EU trade action in addressing China’s behaviour by tackling the support it grants to domestic companies along the Belt and Road Initiative. The Indonesian stainless steel industry is a prime example of the export of Chinese capacities to other countries: Indonesia went from zero stainless steel production in 2017 to the second worldwide capacities in 2022. Similar extensions of capacities have also occurred in India.

“Given the linkages between Indian and Indonesian exporting companies, it is essential that the European Commission remains vigilant with regard to any attempts to circumvent or absorb these measures", concluded Mr Eggert.





Published: 16 March 2022

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