Fresh blow to embattled steel industry

Europe’s steel industry has accused China of dumping products on the market and has called on Brussels to deploy EU trade policy instruments to counter unfair competition. The call has come as the European Commission prepares to announce that it may grant China market economy status as of December 2016. If Brussels does decide to recognise China as a market economy, the EU will be robbed of some of its powers to impose such measures.

In an analysis presented last week, Handelsbanken Capital Markets claimed that China could not be accused of dumping products on export markets since the price of export steel is higher than that of steel sold in China. Mathias Ternell, director of international affairs at the Swedish Steel Producers’ Association, says Handelsbanken’s claim is irrelevant since China is not a market economy; therefore the price of steel on its domestic market has not been set according to market principles.