Reuters reported that the European Commission will launch an investigation by the end of this month into alleged dumping of stainless steel into the European Union by Chinese and Taiwanese producers.

A leading executive said that the case could be the first of a number the European steel industry brings in the coming months to counter record exports from the world's largest steel producer, China. Manufacturers there are boosting output to new highs, despite a domestic slowdown.

Mr Wolfgang Eder CEO of Austrian steelmaker Voestalpine and former president of steel industry body Eurofer said that "These trade cases against cold-rolled stainless from China and Taiwan have been brought up to the Commission and to my knowledge the Commission has agreed to file them. We are expecting more anti dumping (action) in the second half. I can confirm imports into Europe are going sharply up."

An EU source said that the steel industry, represented by EU industry body Eurofer, filed a complaint in mid May. The Commission had 45 days to determine whether or not to proceed with an investigation.

The Commission can impose provisional duties within nine months of launching an investigation if it determines that the imports are dumped, meaning sold at artificially low prices. After a further six months, EU member states can then agree to impose definitive duties, typically lasting five years.

According to Eurostat, the EU also investigates allegations of unfair subsidies with those cases lasting 13 months. EU imports of cold rolled stainless steel sheet from China and Taiwan totalled EUR 758 million last year. EU production in 2012, the last year for which data is available, was worth EUR 23.6 billion.

Taiwanese steelmaker said that "We have been expecting the anti-dumping filing since last year. The impact on Taiwan would be massive. The European zone is the biggest export market of Taiwan’s cold-rolled stainless, accounting for about 25% of total exports."