BRUSSELS : European steel manufacturers are preparing to lodge a complaint in the coming weeks against China for selling finished steel products in Europe at below cost, a source close to the matter said on Tuesday.

"A dossier is being prepared," the source said on condition of anonymity. "If the dossier is lodged, then clearly it's with a request to launch a procedure based on the complaint."

When a dumping complaint is filed with the European Commission, the panel then has to launch an investigation to see whether the charges stand up before taking a decision on retaliation.

Commission spokesman for trade issues Peter Power stressed that the Chinese steel imports were "a complex issue" because there are also many European users happy with cheap Chinese products.

"The final consideration will take into account many elements, not exclusively those (interests) of European steel producers," he told AFP.

Imports of Chinese-made finished steel products into Europe are booming and are expected to double this year, according to Eurofer, a confederation of European iron and steel manufacturers.

That would be much faster than the roughly 20-percent growth that the EU has seen in overall imports of Chinese-made goods in recent years.

As the web of trade between China and the EU grows tighter, Brussels and Beijing have clashed in recent years over numerous issues ranging from surging Chinese clothing exports to copyright piracy.

In their disputes, EU Trade Commissioner Peter Mandelson has sought a softer line than Washington, notably by negotiating bilateral deals with China rather than seeking head-on confrontation by opening cases at the World Trade Organisation.

But in June Mandelson did not rule out the possibility of retaliating in trade disputes, specifically citing a possible anti-dumping case over Chinese steel exports to Europe. - AFP/de