EU Plans Anti-Dumping Tariffs on Chinese Steel Imports

The European Commission announced plans Monday to impose anti-dumping tariffs on Chinese steel exports, citing evidence that Chinese producers are selling at below-market prices and undercutting the region's mills.

The move targets a range of flat-rolled steel products used in construction and manufacturing. The proposed duties, which will be retroactive once formally adopted, could raise the cost of Chinese steel entering the EU by roughly 30% on certain product categories, the Commission said in its preliminary findings.

Reacting to the news, shares of European steelmakers rallied on Monday. ArcelorMittal climbed 3.8% in London. Thyssenkrupp added 2.9% in Frankfurt. The benchmark Stoxx 600 Basic Resources index gained 1.4%, tracking the steel producers higher.

"Chinese mills are running at near-record utilisation rates while domestic demand sags," an EU trade official said. "The only outlet is exports, and they're selling at any price."

The EU imported 3.7 million metric tonnes of flat steel from China in the first 11 months of the year, up 42% from the same period in 2023, data from Eurofer, the regional steel lobby, show. The share of those imports facing antidumping duties now covers roughly three quarters of that volume, the Commission said.

The duties follow a separate probe into Chinese made electric vehicles and underline a broader EU strategy to shield domestic industry from overcapacity in China. Beijing, which has rejected the accusations, is expected to respond with retaliatory trade measures of its own.

"The duty levels are material enough to reshape the trade flow," said a steel trader at a European trading house. "We already see mill offer prices stabilising. The next question is whether the duties hold up once the full investigation wraps up in November."

The preliminary duties take effect this week. A final determination is due by the end of the year.