Eurofer worried about possible subsidies and export of cheap steel from China through Zelezara Smederevo

Axel Eggert, Director General of the European Steel Association Eurofer, says that the association is worried about the possibility that Zelezara Smederevo, following its takeover by the Chinese Hesteel, could get indirect subsidies, but also that the Chinese party will import cheap steel to Serbia, from which it will export it to the EU market.

Eurofer is the association which initiated the investigation by the European Commission (EC) over the dumping prices of steel from Serbia, Russia, Ukraine, Brazil and Iran, because this practice, as Eggert said, is violating the market conditions of the EU.

The chairman of Eurofer says that they are worried by the fact that the Chinese Government, which controls or owns a large part of the steel industry, has requested that the companies it owns should invest in countries outside the EU.

- We are concerned by the fact that the Chinese companies are being subsidized by its own country and that subsidies are indirectly reaching the candidate countries for the accession to the EU – Eggert said.

He says that there's concern that Zelezara Smederevo will continue to receive subsidies, though indirectly, from the Chinese Government.

- Direct and indirect subsidies need to be in line with the rules of the EU. Unfortunately, it seems that nowadays there's a problem of how to control the state aid that might come from a third country which invests in the European facilities. We don't know what the European Commission will do regarding this issue, but we are having talks with them about it – Eggert explained.

He is also worried, as he says, about the possibility of the re-export of Chinese products through Zelezara Smederevo.

- There's a concern that Chinese products might be imported to Serbia, and then exported to the EU. This is not in accordance with the EU rules, and if this were to happen, I'm sure that the European Commission would react – Eggert said.