The European steel producers lobby Eurofer has announced that it has filed an anti-subsidy complaint against the Chinese in relation to their state support for exports of organic-coated steel ( OCS) to Europe, which the group claims it hurting the shrinking EU sector.

The complaint will add to the anti-dumping investigation currently be carried out by authorities and the lobby has claimed that it has evidence that the Chinese government have provided a range of incentives for Chinese steel production, including preferential loans, tax schemes, interest rates and grants for OCS.

Gordon Moffat, Eurofer’s director general, commented “Clearly the miracle of the Chinese steel industry which now counts for almost 50 percent of global steel production is not the result of free market forces.

“The Chinese government at central, provincial and local level owns, directs and subsidises virtually every aspect of its steel industry and has financed huge excess capacities.”