EC investigation finds dumping of Turkish HRC

The European Commission has told interested parties that its probe into imports of Turkish hot-rolled coil (HRC) has found that dumping has occurred, and it intends to impose duties in a range of 4.8-7.6pc.

Steelmaker Colakoglu faces the highest duty at 7.6pc, while Habas the lowest at 4.8pc. Erdemir, which comprises two companies — Eregli Demir and Isdemir — has a provisional duty of 5.4pc. The company has been named as the prime target in the commission's anti-subsidy investigation, the results of which are expected in spring next year.

Re-rollers Agir Haddecelik and Borcelik also face duties at 5.9pc, while all other companies have duties at 7.6pc. The former have likely been selling pickled and oiled material, or processed sheet.

The commission's move is likely to dampen the market, at a time when prices in Turkey have been shooting up amid strong demand from domestic re-rollers. The EU has been the main market for Turkish mills, but volumes have been falling since the investigation began and safeguard measures were imposed.

Some buyers have decided to take risk and import from Turkey, despite the threat of retroactive duties. But provisional duties are expected to be in place from mid-January. The supply glut has left buyers facing limited local supply at surging prices, but some of them are expected to benefit from an import-export tax rebate so they may be able to continue purchasing from the country, if they export their finished product.

By Lora Stoyanova