EU to extend safeguards for one year: sources

Posted on 28 May 2021

EU safeguard measures are expected to be extended for one year from the beginning of July, Kallanish learns from sources in the market.

The European Commission is yet to publish a proposal on the future of the measures. Sources in Europe, though, report that local steel associations are communicating that a decision is close.

According to rumours, the measures could be extended for a period of one year with an increase of tax-free quotas of 5% compared to the current volumes.

An extension of measures would be welcomed by steelmakers in Europe, but a decision to extend them only for one year could create further uncertainty in the market, among buyers and suppliers alike.

"An extension until mid-2022 would only mean re-creating the current scenario of uncertainty in 12 months," a steel processor says. "Imports need to be ordered many months in advance and the uncertainty over the measures is hurting the possibility to make long-term plans."

Source : Kallanish