Posted on 27 Sep 2024
European steel producers are demanding that the European Commission (EC) impose urgent restrictions on steel imports similar to the US Section 232 tariffs. This was reported by Argus.Media, citing industry sources.
The call is related to the rapid increase in steel imports to the EU, in particular hot rolled coils (HRC), which puts significant pressure on local prices. In July of this year, HRC imports reached a record 1.56 million tons, accounting for 25% of the market, the highest level in recent years.
European steel companies, in particular the Eurofer steel producers’ association, are concerned that cheap Asian steel is significantly disrupting the EU market balance. Despite the protective measures in place (the so-called “safeguard quotas”), imports continue to grow, exceeding historical levels.
The main source of steel imports to the EU is China, which has sharply increased its exports since the third quarter of 2023 due to the domestic demand crisis. This has led to increased pressure on the European steel market, which is already experiencing low consumption due to economic instability.
Steelmakers are lobbying for stricter restrictions, as such measures could stabilize the European market and protect local producers from unequal competition. However, the European Commission has not yet made a final decision and notes that any new trade restrictions should be carefully weighed. A European Commission spokesperson in Brussels confirmed that new safeguard measures are being considered, but the final decision will depend on the market situation and the interests of steel users.
The current duties cover about 15% of steel imports, but they do not take into account the full complexity of energy costs and market conditions faced by European companies.
In early August, the European Commission announced the launch of an anti-dumping investigation into imports of certain hot-rolled steel products made of iron, unalloyed or other alloys from Egypt, India, Japan and Vietnam. The investigation will be completed within a year, but no later than 14 months from the date of publication of the notice, with the possibility of imposing provisional duties for 7-8 months.
The market was expecting this step. The potential introduction of retroactive anti-dumping duties on imports of hot rolled coils to the EU could affect trade earlier than expected and affect more than half of HRC imports to the bloc.
Source:GMK Center
