The Wall Street Journal reported that European Union trade officials have approved pre emptive penalties on imports of steel pipe from China,

Seamless steel pipes are major parts in housing construction, gas and oil plants and the automotive industry. The vote was close, according to EU officials familiar with the matter, although they declined to reveal the final tally.

After clearing procedural hurdles, the duties, which will range from 17.7% to 39.2%, are expected to take effect in October and last five years, EU officials said. Temporary duties of up to 24.2% have been in place since April.

Chinese officials said they are preparing a case at the World Trade Organisation against the EU and the US over steel tariffs. The Chinese Ministry of Commerce issued a statement saying it was gravely concerned about antidumping duties on Chinese imports in the US and the EU.

European consumers of Chinese steel imports also are upset at the new tariffs. Mr Jan van Meever, the owner and CEO of Jan van Meever BV, a Dutch company that buys steel pipes from China and resells them in Europe said "Consumers have to pay more because the market is protected, It is just the way it is these days."

Trade experts said that the vote by trade officials from the EU's 27 member states is significant because they accepted an argument from steel producers that punitive tariffs are needed to protect them from the threat of under priced imports from China. Previously, complainants have had to prove the imports had already hurt their businesses. Trade lawyers say they expect a host of industries to ask the EU for protective tariffs in August.

from The Wall Street Journal

Source: steelguru.com