China’s decision to remove its VAT rebate on boron-specific steel exports, is “lacking commitment,” according to Axel Eggert, director general for European steelmakers’ association Eurofer. This is because the measure excludes basic hot-rolled wide strip, while at the same time it creates new incentives for Chinese exporters to continue enjoying the export rebate through the back door", he says in a statement sent to Kallanish.

China's 1 January lifting of VAT export rebate applies to a selection of the vast volumes of steel products concerned, and only when boron is added, he notes - even if the move is “a welcome sign of China's awareness of concerns voiced by the global steel industry on China's steel policy and practices,” he concedes.

Already there are reports of some “Chinese operators looking for ways to circumvent the rebate removal by replacing boron with other alloys, such as chrome,” he explains.

EU imports of boron-added plate from China surged 83% year-on-year in the first 10 months of 2014, while for rebar the rise was 375%, Eurofer adds. It’s likely Europe will continue to experience peak exports of alloyed steels, as in 2014, once the market absorbs the rebate elimination for boron-specific grades, Eggert says. This could “potentially cause higher technical steel performance risks”.

“Trade-distorting industrial policies by third countries are detrimental to the recovery of the European steel industry and destroy jobs in Europe,” Eggert says. “The EU must vigorously act to re-establish fair trade for European steelmakers. We strongly welcome the [EU] Commission’s awareness of the problem.”