Anti-dumping investigation into Chinese hot-dipped galvanized sheet expected to impact European steel market in Q1 2021

2023-04-22 10:10:54 By : admin
and China anti-dumping investigation.

The European steel market has experienced significant price increases in Q4 2020 due to several factors, including tight domestic supply, robust automotive demand, and high raw material costs. According to industry experts, these factors will continue to drive strip steel prices upward in the first half of 2021. However, there is another issue looming on the horizon that could further impact steel prices in the region.
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Recently, the European Commission launched an anti-dumping investigation into Chinese hot-dipped galvanized (HDG) steel sheet. If the investigation results in tariffs or other trade barriers, it could have a significant impact on the European steel market. China is the world's largest steel producer, and its exports of HDG have been a contentious issue in recent years. The EU's investigation is a response to complaints from European steel manufacturers about unfair trade practices by China.

The potential impact of the anti-dumping investigation on the strip steel market is twofold. Firstly, it could lead to higher prices for European buyers of HDG steel, as tariffs would increase the cost of importing the material. Secondly, it could create a shortage of HDG steel in the European market, as Chinese steel producers may decide to redirect their exports to other countries. This shortage would put additional pressure on European steel prices, as buyers scramble to secure supply.

The impact of the anti-dumping investigation on the strip steel market would likely be felt across the supply chain. Manufacturers of products that rely on HDG steel, such as automotive parts and construction materials, would be forced to pay higher prices for the material or switch to alternative materials. This could lead to higher prices for end consumers, further exacerbating inflationary pressures in the European economy.

In response to the potential threat of higher prices and supply shortages, European steel mills are expected to continue to push for higher offer prices in the first half of 2021. The focus of these price negotiations is likely to shift from raw material costs to the tightness in supply, as mills seek to take advantage of the potential for HDG steel shortages. The EU has already imposed tariffs on other types of Chinese steel, so it is entirely possible that the anti-dumping investigation will result in tariffs on HDG steel as well.

Overall, the European steel market is facing significant uncertainty as it enters 2021. With domestic supply tight, costs high, and a potential trade war looming with China, the market is likely to remain volatile in the short term. For buyers of steel products, including HDG sheet, this means that prices are likely to remain high, and supply may be difficult to secure. In this environment, it is essential to work closely with suppliers to ensure that supply chain disruptions are minimized and costs are appropriately managed.

As we move further into the year, the impact of the anti-dumping investigation will become clearer, and its effects on the European steel market will become more apparent. In the meantime, manufacturers must remain vigilant and responsive to market conditions, doing everything they can to maintain supply and manage costs despite the challenges they face. For the European steel industry, the coming months are sure to be a test of its resilience and adaptability in the face of uncertainty and disruption.