The European Commission has started a functioning review of safeguard measures on imports of 26 steel product categories after receiving a request from 13 member states, according to a Dec. 17 notice in the Official Journal of the EU.
A definitive safeguard measure on certain steel products was imposed on Jan. 31, 2019, for an initial three-year period and was then prolonged until June 30, 2024, after a prolongation review investigation
The EC then undertook a second prolongation review on June 24, 2024, resulting in its further extension until June 30, 2026.
The current safeguard measure is based on historical trade flows and consists of a tariff-rate quota. Once the relevant TRQ is exhausted, a duty of 25% is levied.
The EC said the November request from the 13 member states included evidence of changed circumstances since the last review of the measure.
“In particular, the request contains information regarding the contraction in EU demand for steel, resulting in widening gaps with the current level of duty-free quota volumes,” it said, adding that it showed that China’s higher steel export to major regions had pushed exports from other markets to the EU.
It said this called for a reassessment of the allocation and management of the TRQs.
The product categories included non-alloy and other alloy steel products — hot-rolled and cold-rolled sheets and strips, quarto plates, merchant bars and light sections, wire rods and cold-finished bars — and stainless products — HR and CR sheets and strips, HR quarto plates, bars and light sections and wire rod.
It also included electrical sheets, metallic-coated sheets, organic-coated sheets, tin mill products, rebars, angles, shapes, and sections of iron or non-alloy steel, sheet piling, railway material, gas pipes, hollow sections, seamless stainless tubes and pipes, other seamless tubes, large welded tubes, other welded pipes, and non-alloy wire.
The EC review would assess, based on evidence from interested parties, whether any adjustment to the measure was warranted to adapt to market evolution and align with stakeholder interests.
As part of the review, the EC made questionnaires for EU producers and users available and called for written submissions from interested parties by Jan. 10, 2025. It also said it would allow interested parties to comment on other parties’ submissions.
The EC planned to conclude the review by March 31, 2025, adding that any resulting decision could become applicable from April 1, 2025, including a new TRQ volume.
Platts, part of S&P Global Commodity Insights, assessed domestic HRC prices in Northern Europe at Eur560/mt ex-works Ruhr Dec.16, down 19% since the start of 2024.
