Italian distributors’ association Assofermet has formally lodged with Italian authorities a request for a review of the EU safeguard system, which is affecting steel trade, Kallanish learns from Assofermet steel division president Paolo Sangoi.
The association noted that the request was well received by Italian economic development minister Giancarlo Giorgetti. The minister reiterated this week during the Made in Steel show in Milan that the safeguard system no longer works properly and needs revision.
Sangoi noted the negative effects of safeguard measures are visible clearly across Europe. He mentioned, for example, the long backlog at Italian ports due to the need to clear steel volumes using new available quotas. He also added that the steel distribution and processing network in Italy was forced to order from abroad due to the lack of volumes available internally.
“My group had to suffer three renegotiations of existing contracts with European suppliers during 2021,” Sangoi said, referring to the difficulties created by rallying prices and scarce availability in the domestic market.
The official European Commission document confirming the extension of safeguard measures earlier this year included the possibility of launching an annual review.
Emanuele Norsa Italy