EU May Re-Impose Graphite-Electrode Tariffs on India to Aid SGL

The European Union threatened to renew tariffs as high as 9.4 percent on graphite electrodes from India to help EU producers including SGL Carbon SE (SGL) vie with lower-cost competitors.

The EU said it would reconsider letting lapse the duties on graphite electrodes for electric furnaces, used by steelmakers including Germany’s ThyssenKrupp AG. (TKA) The bloc imposed the trade protection for five years in 2004 to counter Indian subsidies to exporters including HEG Ltd. (HEG) and below-cost -- or “dumped” -- sales by those companies in Europe.

Two reviews “will determine whether the expiry of the measures would be likely, or unlikely, to lead to a continuation or recurrence of subsidization and injury” and “of dumping and injury,” the European Commission, the 27-nation EU’s regulatory arm in Brussels, said today in the Official Journal. The duties were due to expire this week and will now stay in place during the probes, which can last as long as 15 months.

The investigations result from June 18 requests by three EU producers including Germany’s SGL. These manufacturers claim that renewing the EU trade protection is justified because Indian competitors continue to receive government aid and to pose a dumping threat, according to the commission.

When imposing the duties in September 2004, the EU set the anti-subsidy rate at 15.7 percent for all Indian producers of graphite electrodes for electric furnaces except HEG, which faced a 7 percent levy, and fixed the anti-dumping rate at zero for all Indian manufacturers.

Last December, the EU re-weighted the measures for all Indian companies except HEG, which still faces a 7 percent anti-subsidy duty and a zero anti-dumping rate. Graphite India Ltd. (GRIL) is now subject to a 6.3 percent anti-subsidy duty and a 9.4 percent anti-dumping rate and any other Indian producers face a 7.2 percent anti-subsidy duty and an 8.5 percent anti-dumping levy.

To contact the reporter on this story: Jonathan Stearns in Brussels at

To contact the editor responsible for this story: James Hertling at

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