Eurofer reported that an EU-based importer avoided paying these duties by making false import declarations. As a result of investigations into suspected fraudulent activities, significant quantities of Chinese heavy plate were held in Belgian ports.
The specific product involved in this fraudulent scheme was Chinese heavy plate imported under a false code to evade the average anti-dumping duty of 73.3 per cent. The total financial loss across the European Union is estimated at €6.5 million and there may be additional financial and criminal consequences resulting from this fraudulent activity.
According to Eurofer, this fraud was uncovered through the joint efforts of the European Anti-Fraud Office (OLAF), the European Public Prosecution Office (EPPO) and customs authorities in various EU member states. However, the association did not disclose the name of the importer involved. However, sources familiar with the matter indicated that the importer was a trading company based in Western Europe.
The European heavy plate market experienced a significant price increase in 2022 due to sudden purchases triggered by Russia's invasion of Ukraine. In April 2022, European heavy plate prices reached an all-time high since assessments began, averaging €1,893.75 ($2,018.83) per tonne, up €386.75 per tonne from the previous month. However, prices decreased from May 2022 to January 2023 due to initial overstocking and reduced demand from end users following the crisis in Ukraine.
In January 2023, plate prices started to recover due to restocking activities, improved demand and reduced supply. The market was also affected by production cuts imposed by European producers in late 2022 to rebalance supply and demand. In addition, lower plate volumes from Ukraine and Russia also contributed to the supply shortage. Ukraine used to be a major plate supplier to the EU, accounting for around half of the EU's plate imports. However, exports from Ukraine to the EU decreased significantly in 2022 due to the transfer of control of key plate production assets to Russia.
While Ukraine's slab exports decreased, suppliers in Asia increased their shipments to the EU in 2022. For example, Indonesia's plate shipments to the EU more than doubled to 325,637 tonnes compared to 127,157 tonnes in 2021. Similarly, India increased its plate supplies to the EU from 255,266 tonnes in the previous year to 344,823 tonnes in 2022. Japan also doubled its plate supplies to the EU, reaching 137,192 tonnes in 2022 compared to 63,012 tonnes in 2021. Turkish producers also significantly increased their exports of plate to the EU, increasing shipments from 8,636 tonnes in 2021 to 52,470 tonnes in 2022.
Recent reports indicate that European board prices have decreased due to apparent sluggish demand and decreasing raw material prices.
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