The European Steel Association (EUROFER) has stated that the Chinese government promotes exports of alloyed steels with tax rebates of nine to 13 percent on the general export tax of 17 percent. To get the most tax-beneficial classification as alloyed steels, as EUROFER went on to say, Chinese steel producers add cheap alloy boron agent to steels specified by the customer as non-alloy qualities. Although the boron quantities are up to twice as high as permitted, Chinese steels are marketed in the EU as unalloyed steels.
EUROFER said that steel supplied in the EU market by European steel producers complies with European regulations and standards. This is not guaranteed in the case of Chinese steel imported into the EU, notably imports of wire rod, rebar and bar, as well as hot rolled coil and heavy plate.
"Not only does China promote exports of its excess steel production by targeted product tax advantages, but Chinese steel qualities also confuse the markets as Chinese producers exploit the export tax regime. The EU market surveillance authorities are now required to eliminate the risk of misleading use of the CE mark," EUROFER director general Axel Eggert stated. "Steel processors must be protected from being exposed to wrongfully declared qualities to the risk of serious economic disadvantages," he said.
According to EUROFER, China's steel exports are estimated to reach at least 85 million mt this year, up by 43 percent year on year. Chinese exports of steel products in which boron is typically added represent more than 50 percent of the total Chinese export volume.