Trade action on primarily hot dipped galvanized (HDG) material is likely. But how effective would any import restrictions be?
In recent weeks, talk of a request from European steelmakers being put to the EC to investigate HDG imports has grown.
And the data would appear to support the European steelmakers.
Source: ISSB, MBR
EU imports of HDG from non-EU sources during the first half of 2016 increased by around 80% compared with the same period last year.
As the chart shows, most of this upswing can be attributed to an increase in arrivals from China.
The standard belief is that if trade protection had prevented such influx, Europe’s coated steelmakers would have enjoyed higher prices for galvanized material.
On this argument, however, the evidence is mixed.
Certainly, prices on most flat rolled steel products in Europe have increased in recent months.
And this follows the...