11 November 2022 – According to sources familiar with the matter, the EU’s anti-circumvention investigation against stainless steel hot-rolled flat products (SSHR) from Indonesia and Turkey is being fought tooth and nail. Even when the ammunition turns out to be a barrel burst. The nickel rally on the LME and SHFE continues, with dramatic price increases since the beginning of November. And is it allowed to break WTO regulations for subsidies in the EU?
EU Anti-Circumvention Investigation Stainless Steel
The anti-circumvention investigation against stainless steel hot-rolled flat products (SSHR) from Indonesia via Turkey, initiated by the European Steel Producers’ Association EUROFER, has gone quiet – or so one would think.
Tough battle behind the scenes
As reported by involved parties, there is a hard struggle going on behind the scenes. In particular, EUROFER and an Italian stainless steel producer have taken aim at another well-known Italian producer.
The main defendant in the anti-circumvention proceedings, according to his own statements, tried to break free a few days ago after fierce attacks from EUROFER.
Justification attempts to circumvent the anti-dumping measure
Attempts to undermine the case by arguing that the material subject to the anti-circumvention allegations was only imported for domestic use could prove to be a failure. EUROFER and the European Commission are now likely to ask themselves whether the Italian manufacturer has processed and sold the imported material or what else it might have used for its own needs.
Nickel rally continues
The nickel rally continued on Friday. Since 1 November 2022, nickel on the SHFE has gained a whopping 13.5%. And is now close to the USD 30,000 mark again. The same can be seen on the LME, where nickel has even jumped up by almost 24%.
Positive influences can be seen in particular in good news from China and the significant drop in inflation in the United States. In addition to the German DAX and the Dow Jones, this has recently caused the Chinese Hang Seng in particular to shoot up. The Hang Seng has risen by almost 19% since the beginning of November.
CBAM: Europe should renounce WTO compliance
The latest demand from EUROFER and other associations is clear. If the United States is handing out billions in subsidies, Europe must not follow suit – regardless of whether it is legally sound or not. And if the EU’s own lobby child, the EU Carbon Border Tax CBAM, stands in the way, it must be pushed aside and WTO regulations broken. Normally, the Europeans are more creative in hiding their subsidies behind fancy names. All that remains is to say: stop complaining!
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