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| UK steel crisis: EU leaders vow 'full and speedy' response to halt cheap imports | UK steel crisis: EU leaders vow 'full and speedy' response to halt cheap imports |
| (35 minutes later) | |
| European politicians have promised “full and speedier” measures to stem the tide of cheap Chinese imports blamed for bringing Britain’s steel industry to its knees. | European politicians have promised “full and speedier” measures to stem the tide of cheap Chinese imports blamed for bringing Britain’s steel industry to its knees. |
| The pledge came as Europe’s largest steelmakers called for immediate action to save an industry that has shed 85,000 jobs across the continent since 2008. | The pledge came as Europe’s largest steelmakers called for immediate action to save an industry that has shed 85,000 jobs across the continent since 2008. |
| It followed a crunch EU summit on Monday attended by the Conservative business secretary, Sajid Javid, amid fierce criticism of the UK government’s handling of the steel crisis. | |
| UK steel companies have announced 5,000 job cuts in a matter of weeks, blaming unfairly subsidised Chinese imports, high energy costs and business rates, and a strong pound. | UK steel companies have announced 5,000 job cuts in a matter of weeks, blaming unfairly subsidised Chinese imports, high energy costs and business rates, and a strong pound. |
| Related: As British steel industry goes into meltdown, government faces some burning questions | Related: As British steel industry goes into meltdown, government faces some burning questions |
| Speaking after the summit, Luxembourg’s economy minister, Etienne Schneider, who chaired the talks, promised to “deliver the right conditions” to ease a “huge crisis” for Europe’s steelmakers. | |
| Schneider stopped short of a suggestion from the European Steel Association (Eurofer) to use China’s attempt to win Market Economy Status from the World Trade Organisation as a bargaining chip. | |
| Once granted, the status would make it easier for Chinese companies to defend themselves against anti-dumping cases brought by the WTO. | |
| Schneider was also tight-lipped about the industry body’s recommendation of a “surveillance” system to monitor imports more closely. | Schneider was also tight-lipped about the industry body’s recommendation of a “surveillance” system to monitor imports more closely. |
| Instead, he said Europe would consider proposals to give energy-intensive businesses such as steel an easier ride under the emissions trading scheme, which is aimed at reducing CO2 emissions. | Instead, he said Europe would consider proposals to give energy-intensive businesses such as steel an easier ride under the emissions trading scheme, which is aimed at reducing CO2 emissions. |
| He also said politicians would try to make trade defence measures “full and speedier”. | He also said politicians would try to make trade defence measures “full and speedier”. |
| Higher import duties can be imposed on specific products when foreign countries are deemed to be dumping supply into Europe. However, firms say they can take up to a year to enforce. Steelmakers want the system to move as quickly as it does in the US, where extra tariffs can be raised in a matter of weeks. | |
| They say this would counteract Chinese firms – subsidised by artificially cheap “soft loans” from Beijing – flooding Europe with cheap steel to offset waning domestic demand. | They say this would counteract Chinese firms – subsidised by artificially cheap “soft loans” from Beijing – flooding Europe with cheap steel to offset waning domestic demand. |
| “To avoid imminent, irreparable damage to the EU steel industry, policymakers need to take immediate action, using the full set of available trade defence instruments, including speeding up the imposition of measures,” said Eurofer. | “To avoid imminent, irreparable damage to the EU steel industry, policymakers need to take immediate action, using the full set of available trade defence instruments, including speeding up the imposition of measures,” said Eurofer. |
| European commission rules also allow for temporary trade restrictions when there is an “unforeseen, sharp and sudden increase in imports”. | European commission rules also allow for temporary trade restrictions when there is an “unforeseen, sharp and sudden increase in imports”. |
| But steelmakers believe the criteria required to impose such safeguards are too onerous. The Tata Steel chief executive, Dr Karl-Ulrich Köhler, was expected at a dinner with ministers in Brussels on Monday night to urge politicians to sharpen these tools. | |
| Köhler, who announced 1,200 UK job cuts last month, said the sense of urgency among British politicians had increased a lot, but added: “Can we expect at this moment clear actions? No.” | |
| “The US and other countries have already moved to prevent cheap Chinese imports distorting their markets and now the EU must do the same – and quickly,” said Gareth Stace, director of trade body UK Steel. | “The US and other countries have already moved to prevent cheap Chinese imports distorting their markets and now the EU must do the same – and quickly,” said Gareth Stace, director of trade body UK Steel. |
| British firms have complained that they are also being hurt by high business rates and energy costs, both of which they say are far more burdensome than in the rest of Europe. | British firms have complained that they are also being hurt by high business rates and energy costs, both of which they say are far more burdensome than in the rest of Europe. |
| Labour’s shadow business secretary, Angela Eagle, said: “The government is sitting on its hands and has shown an unwillingness to take the strategic and decisive action required.” | |
| Steelworkers ramped up the pressure on the Javid by staging a protest outside the Brussels summit. Union sources said staff from Teesside, Rotherham, Scunthorpe and south Wales travelled to Brussels on the same Eurostar train as the business secretary. | |
| Chinese steel imports to the UK have more than doubled since 2013 to 616,808 tonnes, with three months of the year still to go, according to the International Steel Statistics Bureau. | Chinese steel imports to the UK have more than doubled since 2013 to 616,808 tonnes, with three months of the year still to go, according to the International Steel Statistics Bureau. |
| The influx has seen the price of hot rolled coil – a bellwether of European steel – slump 20% in a year from €417.5 (£297) per tonne to €335, while the People’s Republic will provide around half of Britain’s reinforcing steel – used in construction to strengthen concrete – in 2015. | |
| China accounts for about 50% of global steel production. The EU’s share has fallen from 22% in 2001 to 10%. | China accounts for about 50% of global steel production. The EU’s share has fallen from 22% in 2001 to 10%. |
| Britain’s steel industry, which employed more than a quarter of a million people in 1967, has suffered a parallel period of decline that could cut the industry’s total headcount to just 25,000. | Britain’s steel industry, which employed more than a quarter of a million people in 1967, has suffered a parallel period of decline that could cut the industry’s total headcount to just 25,000. |
| Indian-owned Tata Steel’s 1,200 jobs added to layoffs by Caparo and Thailand’s SSI, which put the Redcar steelworks on Teesside into liquidation. | Indian-owned Tata Steel’s 1,200 jobs added to layoffs by Caparo and Thailand’s SSI, which put the Redcar steelworks on Teesside into liquidation. |
| Angad Paul, the chief executive of struggling firm Caparo – set up by his steel magnate father Lord Paul – was found dead on Sunday morning after falling from his central London flat. | Angad Paul, the chief executive of struggling firm Caparo – set up by his steel magnate father Lord Paul – was found dead on Sunday morning after falling from his central London flat. |
| Schneider said the EU would now intensify talks with steel producers such as China and Russia, as well as holding a second summit, this time including steel industry figures, before the end of the year. | |
| Roy Rickhuss, general secretary of the Community union, said: “Council ministers and the [European] commission have clearly failed to grasp the urgency of the current situation faced by the steel industry. Steelworkers whose jobs are at risk and who are seeing the impact of the dumping of cheap steel will take very little comfort from the conclusions of today’s meeting. | |
| “We need action now and would have at least expected a clear statement of intent from the meeting that they will speed up reform of trade defence instruments or introduce other measures so that European steel producers are better protected from dumping. | “We need action now and would have at least expected a clear statement of intent from the meeting that they will speed up reform of trade defence instruments or introduce other measures so that European steel producers are better protected from dumping. |
| “The promise of yet another meeting of steel stakeholders only delays the action the industry requires.” | “The promise of yet another meeting of steel stakeholders only delays the action the industry requires.” |