* EU firms say China dumping stainless steel tubes in EU
* EU dumping investigation expected this month
* Complaint brought by Salzgitter, Tubacex
(Adds detail, quotes)
By Juliane von Reppert-Bismarck
BRUSSELS, Sept 23 (Reuters) - German and Spanish steel makers have called for new tariffs on Chinese steel pipes used in the energy sector, highlighting concerns China is benefiting more than European industry from the EU's economic recovery.
Germany's Salzgitter and Spanish steel tubes maker Tubacex
"The Community industry managed to keep its market share
practically constant, but was forced for that to drastically
lower its prices and profitability," says the complaint, which
was seen by Reuters. The European Commission, the EU's executive, is expected to
respond by launching an investigation into the allegations this
month, EU diplomats said. This could lead to interim import duties as early as next
June, followed by five-year duties from December 2011. An EU investigation is likely to antagonise China, whose
trade practices are the subject of a raft of fresh EU
inspections and tariffs. In the past three months, the EU has
moved to raise tariffs on Chinese products ranging from car
wheels and modems to paper and fibreglass. CHINA GROWS ITS EU MARKET SHARE In 2009, China supplied about one sixth of the EU's
half-billion-euro demand for pipes and tubes. By the first
quarter of 2010, with EU demand growing, China's market share
had risen to 18.3 percent, Salzgitter and Tubacex said in their
complaint. The complaint said Chinese illegal pricing was squeezing out
other exporters, while the country's "huge capacity and
overcapacity" prompted by "heavy subsidies and export rebates"
posed a long-term threat to the EU's industry. Other countries may also be using illegal trade practices,
it warned: "Obviously the main injury (to EU industry) comes
from China... However, the Complainants will continue to closely
monitor the situation, especially with regard to India, South
Korea and Ukraine." The pipes and tubes are used mainly in the energy sector for
drilling for oil and piping oil and gas. Salzgitter and Tubacex lodged their complaint through the
Defence Committee of the seamless steel tubes industry of the
European Union, and on behalf of their operations in Austria,
Germany, Italy, France and Spain. (Editing by Mark Heinrich)