Assofermet Acciai, the Italian association representing users, distributors and processors of steel, has sent an official letter to the European Commission (EC) warning against possible new safeguard measures.
The letter, signed by Tommaso Sandrini, head of the association, explains that the mere announcement of the safeguard investigation has already impacted the market with uncertainty. As a result, activity in the market has reduced and so have some prices.
“There are already European legislation systems to monitor imports in the market,” states the letter seen by Kallanish. “It is therefore considered inappropriate to introduce new measures only based on the assumption of risks that are yet to be confirmed.”
Moreover, if the EU is permanently excluded from US import measures, local producers will have new opportunities to export to North America as some other historical suppliers will be excluded.
Sandrini also highlights that the European Commission did not include semi-finished products in the list of products to be examined for possible safeguard measures. This has raised scepticism among steel buyers due to the possible benefits for steelmakers in Europe.
As reported, the EC started at the end of March a new safeguard investigation concerning some 26 steel products, with a specific focus on the potential diversion of trade resulting from the new US tariffs.