The investigation will look at the rise in imports of High Fatigue Performance (HFP) rebar, a situation seen as "no longer sustainable" by European trade body EUROFER.
UK Steel has long campaigned against the influx of Chinese carbon steel rebar, which is coming into the UK at below market prices and putting huge pressure on domestic steel manufacturing, at a time when UK demand for the product is rising.
The organisation, which represents every steel producing company in the UK and many steel processing companies, launched the Charter for Sustainable British Steel in 2014 to combat the excess of what they see as sub-standard Chinese rebar imports.
Construction companies including Balfour Beatty and Morgan Sindall and a range of Local Authorities have already signed-up to the Charter, which promotes the use of sustainable, BES 6001 accredited rebar. The Charter has also been formally welcomed by the UK Government and the Welsh Government.
UK Steel hopes this announcement marks a step-change for European procurement practices, reintroducing a level playing field for suppliers across the UK and Europe.
Gareth Stace (pictured), director of UK Steel, said: "UK steel members are encouraged by the Commission's action to investigate our complaint that rebar from China is being dumped on the EU market, at below fair market prices, causing injury to EU producers.
"Over the last three years we have seen import penetration into the UK rise from near zero to approximately 50% of the UK market. I fully support the actions that EUROFER has taken in addressing these imports, which we see as not subject to fair market economy conditions.
"I very much hope that this investigation can be concluded as quickly as possible, to ensure that UK rebar producers can once again operate in a free and fair global marketplace.
UK Steel is the trade association for the UK steel industry and a division of EEF, the manufacturers' organisation. All the country's steelmakers, and most downstream processors, are in membership.