Ezz Steel, listed on the Egyptian Exchange under the code ESRS, has sent a clarification regarding the provisional anti-dumping duty imposed by the European Union.
The company’s statement, sent to Mubasher Info, stated that it is necessary to correct some interpretations and provide an accurate account of the company’s position and the grounds for its objection to the European Commission’s provisional findings regarding the imposition of anti-dumping duties on the company.
The statement added: “The European Commission’s provisional recommendations contain fundamental errors in calculating the dumping margin, primarily due to the incorrect application of foreign exchange rates.
The Commission chose the “contract date” as the “sale date” to determine the approved exchange rate, which contradicts both EU anti-dumping regulations and World Trade Organization principles, which stipulate that the “invoice date” is the correct reference.”
The statement explained: “As a result of this deviation, the Commission applied the official exchange rates issued by the Central Bank for the period from January to March 2023, instead of the actual parallel market rates used in Ezz Steel’s transactions. These rates were used consistently and documented in the audited financial records submitted to the Commission. It is worth noting that the Commission recognized these rates and correctly applied them for the remainder of the investigation period, which extends from April 2023 to March 2024.”
The Ezz Steel statement indicated: “Furthermore, the methodology adopted by the Commission ignored clear and verifiable documentation provided by Ezz Steel confirming that the basic terms of sale are determined on the invoice date, not the contract date.”
Regarding production capacity, the company confirmed its desire to clarify some statements regarding Egypt’s production capacity of hot-rolled flat steel, noting that Egypt’s production capacity has not changed from HRC since 2002. In fact, national production capacity decreased by 600,000 tons between 2020 and 2021, following the closure and liquidation of the Iron and Steel plant.
Ezz Steel stated that it will submit its official comments and all necessary supporting information regarding the provisional results to the European Commission on April 22, 2025. This reflects Ezz Steel’s ongoing commitment to transparency and constructive cooperation, ensuring that the final results accurately reflect the company’s actual facts and practices, which adhere to fair trade principles and comply with international regulations.
