The EU should introduce a global steel import quota with caps for each country, according to a large portion of the feedback submitted to the European Commission in a post-safeguard consultation.
The quota should be global for some products, with lower volumes compared with the current mechanism, according to submissions from buyers and sellers. And the measure should be extended downstream to protect European service centres and their customers, many respondents said.
EU producers want the new measure to cap imports’ share of the flat products market at 15pc, or around 11mn t, and for imports to account for just 5pc, or 2mn t, of the long products market. A 50pc tariff should apply for imports in excess of the quotas. Some buyers agree with this, although others suggest it would be too restrictive.
Mills want the measures to be imposed from January, but trading firms want a later start date to enable them to prepare. “Importers require a minimum lead time of nine months from the publication of any post-safeguard measure to ensure proper adaptation and implementation,” trading company Steelinvest said.
The South Korean government has asked for the new measure to be communicated at least six months in advance, and to not be applicable until the expiration of the current safeguards.
“Above all, rules must be communicated clearly and well in advance of entry into force. Distributors need time to adjust sourcing strategies, while downstream industries require predictability to absorb the transition without disruption. Poorly calibrated or rushed measures risk distorting supply chains, penalising reliable suppliers, and creating volatility — especially for small and medium-sized enterprises,” steel distributors’ association EUROMETAL said, while reiterating its call for downstream measures.
German cold-roller Bilstein said the measure should be indefinite, with a review clause to react quickly to market changes.”A long-term regulatory framework — with periodic, structured reviews — will underpin a sustainable, competitive and resilient European steel industry,” producer ArcelorMittal said in its feedback to the commission.
German trading company Interfer said there should not be tariffs on low-carbon steel and for dimensions where EU supply is insufficient, and tariffs of 5-15pc should be put in place for other material, depending on their availability from EU mills. The European Advanced Carbon and Graphite Materials Association — which represents EU graphite electrode producers — said imports of low-carbon steel should be banned to increase domestic electrode capacity, while scrap exports should be restricted.
EU producers are also pushing for strict melt-and-pour rules, but association Eurometal and South Korean stakeholders said the addition of such a clause should aim to avoid “unnecessary burdens” and requires “clear and detailed guidance”.
By Lora Stoyanova
Source: argusmedia.com
